Social Sciences and History / Unit 15 SSH 1407 short lesson, about 20 seconds
Why SRAS Slopes Up and LRAS Stands Vertical
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The idea
The short-run aggregate supply curve slopes up: higher output prices against fixed input prices invite production. It is near-horizontal on the left and near-vertical on the right. The long-run curve is vertical at potential GDP, the most the economy can produce.
In practice
Full-employment GDP: potential's other name.
Where people slip
The axes are price level and real GDP.
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