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Unformatted text preview: supply would be more elastic in long run. In short run, only the apple farmers know how to grow apples, then we cant easily increase the supply of apples but in the long run, we can train more people to become apple farmers e.g. we can train the orange farmers to become apple farmers. so we can more easily to increase the supply of apple, so supply of apple is more elastic in the long run. In macroeconomics, in long run, we assume FULL EMPLOYMENT LEVEL, given full employment level, the aggregate output (real GDP) is constant given all price level, so the long run aggregate supply curve is a vertical line....
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- Spring '06