For every possible price the short run supply curve says how much you produce in the short run, whereas the long run supply curve says how much you will produce in the long run. In the simple perfect competition model the long run is enough time for firms to change all of its inputs.
Then what is the difference between short run and long run aggregate supply? I’m confused.
For every possible price the short run supply curve says how much you produce in the short run, whereas the long run supply curve says how much you will produce in the long run. In the simple perfect competition model the long run is enough time for firms to change all of its inputs.