Apr 21 2012

Long-run aggregate supply

Published by at 7:35 pm under

A curve on the aggregate demand and aggregate supply model that is vertical at the nation’s full employment level of output. Due to the fact that wages and prices are flexible in the long run, a nation’s economy will always return to its full employment level of output following a change in aggregate demand, according to classical economic theory, at least.

About the author:  Jason Welker teaches International Baccalaureate and Advanced Placement Economics at Zurich International School in Switzerland. In addition to publishing various online resources for economics students and teachers, Jason developed the online version of the Economics course for the IB and is has authored two Economics textbooks: Pearson Baccalaureate’s Economics for the IB Diploma and REA’s AP Macroeconomics Crash Course. Jason is a native of the Pacific Northwest of the United States, and is a passionate adventurer, who considers himself a skier / mountain biker who teaches Economics in his free time. He and his wife keep a ski chalet in the mountains of Northern Idaho, which now that they live in the Swiss Alps gets far too little use. Read more posts by this author

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