00:01
So here we're talking about aggregate supply.
00:03
So let's make sure we draw a picture, right? when we talk about aggregate supply, aggregate demand, we're talking about price and output.
00:10
It's a story between these things.
00:12
And we said that the aggregate supply curve in the long run is vertical, long run aggregate supply.
00:18
This is absolutely true.
00:19
This is how it's drawn.
00:21
It is a whole bunch of these things, right? so one, it does indeed represent potential output.
00:32
That is the point of aggregate supply, right? aggregate supply is telling you what the economy is able to produce.
00:37
The only thing that the economy can produce sustainably in the long run is potential output.
00:43
That is the definition of aggregate supply, potential output.
00:50
But full employment output is the same thing, right? potential output is defined as full employment output.
00:57
Because full employment output is defined as the number of people who will be employed in the long run.
01:03
So if we know how many workers will have producing, we know how much production will have...