A presumed “long run” aggregate supply curve has become an accepted and widely incorporated construct in contemporary macroeconomics. Unfortunately, that theoretical model, with its vertical supply curve, has been subjected to hardly any empirical testing. The major thrust of the present analysis is to determine whether such testing will show if continued use of the concept is warranted as a virtual representation of the actual economy. The critique herein stresses the necessity for a clock-time format to examine the empirical adequacy of the LRAS construct. Using an arbitrarily chosen four year, minimal, “long run” model period, divided into two appropriate biennia of stipulated change, the analysis finds the LRAS curve empirically unsupported over the crucial second biennia.
The aggregate supply functions of US agriculture 1910-1965.