Microsoft Word – Final Exam BUS500B.docxExplain the differences between short-run aggregate supply curve (SRAS) and long-run aggregate supply (LRAS). (Hints: there are three main points such as market...

Microsoft Word – Final Exam BUS500B.docxExplain the differences between short-run aggregate supply curve (SRAS) and long-run aggregate supply (LRAS). (Hints: there are three main points such as market condition, wages & prices and government policies). Please use both SRAS and LRAS curves show how output (Y) fluctuates around potential output (YP), leading to the business cycle. Which one of supply curves is very inelastic?