2.3 Aggregate Supply Flashcards
1
Q
Aggregate supply definition
A
total supply of g/s produced within an economy at a specific price level at a given time
2
Q
Factors influencing SRAS
A
Change in cost of production
Exchange rate-producers often import raw materials (WIDEC SPICED)
Tax rates- increased costs-> less output
3
Q
Factors influencing LRAS 5
A
Technology changes
Change in Productivity
Change in Skills/Education
Government regulations
Migration
