For the short-term total supply curve, if the product price rises, then the manufacturer will increase the output of the product in pursuit of higher profits. Therefore, the short-term total supply curve rises with the rise of prices. But with the change of time, the market will adjust itself to the previous cost ratio. Therefore, for the long-term total supply curve, price and output are irrelevant.

2. The trend is different

The long-term total supply curve is vertical, and the short-term total supply curve is inclined to the upper right.

3. Different influencing factors

There are three main factors that affect the long-term total supply curve: one is the change of potential GDP, the other is the change of monetary wage rate, and the third is the change of other raw material costs. The factors affecting the short-term total supply curve are different from the above points. Expected price changes will affect the short-term aggregate supply curve. In addition, the change of production technology level will also affect the short-term total supply curve.

Baidu Encyclopedia-Long-term Total Supply Curve

Baidu Encyclopedia-Short-term Total Supply Curve