When talking about aggregate supply, it is necessary to
A) focus on the short run.
B) distinguish between long-run aggregate supply and short-run aggregate supply.
C) focus on the long run.
D) distinguish between long-run full employment and short-run full-employment.

Question

Quizplus · Accepted Answer

It is necessary to distinguish between long-run aggregate supply, which is determined by the availability of resources, technology, and institutions, and short-run aggregate supply, which is influenced by various factors such as price level, expected future prices, and productivity. Therefore, option B is the correct choice.

When Talking About Aggregate Supply, It Is Necessary to