Summary implications LRAS Y=Y+a(P-P) SRAS Each of the three models of agg.supply imply the relationship summarized by the SRAS curve equation CHAPTER 13 Aggregate Supply slide 7 CHAPTER 13 Aggregate Supply slide 7 Summary & implications Each of the three models of agg. supply imply the relationship summarized by the SRAS curve & equation Y P LRAS Y SRAS ( )e Y Y P P = + −  e P P= e P P e P P 1