Procrustean Art of Backtracking: “Long-run AS Curve”
To begin, we have in the AS-AD model the real GDP [ Y = ( nominal GDP )/ ( the price level) ] on the abscissa and the price level ( P ) on the coordinate. Some Q&A’s, first: 1) What is “the price level” ( P )? Ask macroeconomists, please. 2) What is “the real GDP”? Ask macroeconomists, please. 3) What is a “long run” like? Ask macroeconomists, please 4) What is “AS (for aggregate supply)”? Ask macroeconomists, please. 5) What is a “curve” like? Ask macroeconomists, please. 6) What is “the long-run AS curve”? Ask macroeconomists please. 7) How are “the price level” for GDP and “the price level” on the ordinate different? That’s a great question, but again “Ask macroeconomists, please.” Amon...