2.3 Aggregate Supply

Question 1

What is Aggregate Supply?

Answer 1

• Total volume of goods produced by an economy at any given price level

Question 2

What is the short-run?

Answer 2

• When at least one factor of production is fixed

Question 3

What are the 3 main factors shifting the AS Curve?

Answer 3

• Prices of raw materials (e.g., Oil)
• Changes in exchange rates
• Changes in tax rates

Question 4

What are the 2 types of long-run AS curves?

Answer 4

• Classical
• Keynesian

Question 5

What 6 factors shift the LRAS?

Answer 5

• Technology
• Changes in productivity (e.g., efficiency and skills)
• Changes in Education and skills
• Changes in Government Regulation
• Demographic changes and migration
• Competition Policy