1.3 Aggregate Supply

Question 1

What does aggregate supply show

Answer 1

The quantity of real GDP which is supplied at different price levels in the economy

Question 2

Why is the AS curve upward sloping

Answer 2

At a higher priced level, producers are willing to supply more because they can earn more profits

Question 3

Explain the movements along this AS curve

Answer 3

Question 4

Explain the shifts of this AS curve

Answer 4

Question 5

What does a Keynesian long run AS diagram look like

Answer 5

Question 6

Explain the Keynesian long run AS curve

Answer 6

Question 7

Explain this Keynesian AS curve

Answer 7

Question 8

What does a Neoclassical Aggregate Supply curve look like

Answer 8

Question 9

Explain the Neoclassical Aggregate Supply curve

Answer 9

In the long run, output is fixed at each level and all factors of production in the economy are fully employed

Question 10

Explain this Neoclassical Aggregate Supply curve

Answer 10

Question 11

What factors influence long-run AS

Answer 11

Technological advances 
Changes in relative productivity 
Changes in education and skills changes in government regulations 
Demographic changes and migration 
Competition policy

Question 12

How do technological advances influence long-run AS

Answer 12

Question 13

How do changes in relative productivity influence long-run AS

Answer 13

Question 14

How do changes in education and skills influence long-run AS

Answer 14

Question 15

How do government regulations influence long-run AS

Answer 15

Question 16

How do demographic changes and migration influence long-run AS

Answer 16

Question 17

How does competition policy influence long-run AS

Answer 17