14.1 R.lucas Supply Function R.lucas Supply Function Y=h(p-p)+Y P-P=0 Y=Y For a typical and representative corporation, when price of his products is exactly equal to all round price, his output is exactly equal to his optimal output. h represents reaction to difference between changing range of some prices and aggregate prices, h>0 means a curve with positive slope 复济院14.1 R.lucas Supply Function vR.lucas Supply Function For a typical and representative corporation, when price of his products is exactly equal to all round price, his output is exactly equal to his optimal output. h represents reaction to difference between changing range of some prices and aggregate prices, h>0 means a curve with positive slope. * ( ) Yi  h Pi  P Yi Pi P  0 * Yi  Yi