What is the total supply curve?

There are three kinds of total supply curves, namely short-term total supply curve, medium-term total supply curve and long-term total supply curve, in which 1 long-term total supply curve refers to the classical total supply curve.

1, the short-term total supply curve is horizontal, because short-term means short time and manufacturers have no time to adjust the price, so they can produce any quantity of products while keeping the price unchanged.

2. The mid-term total supply curve inclines to the upper right, which is the curve we often discuss. In the medium term, manufacturers have enough time to adjust the price while adjusting the output, and the adjustment direction of the two is the same.

3. The long-term total supply curve is vertical, because the manufacturer has enough time to adjust the price in the long term, but the output has reached the potential maximum output, that is, the output has been adjusted to the point where it can no longer be increased. The output at this time is potential GDP, also known as GDP at full employment and GDP at natural unemployment rate. Because it cannot be increased, it is perpendicular to the x axis.

There is no difference in the total supply between the two schools of modern macroeconomics-neo-Keynesianism and neo-classical macroeconomics.

PS: Most of the economic problems discussed in classical economics are long-term.

It is better to illustrate this problem with pictures, but considering that the above picture is unlikely to be recognized, I will dictate it directly. The landlord can refer to Gao Hongye's Macro Part of Western Economics or Man Kun's Macroeconomics, both of which are introduced in detail.