2.3 Aggregate Supply Flashcards
1
Q
What is aggregate supply?
A
The volume of goods and services produced within the economy at a given price level
2
Q
What causes a movement along the AS curve?
A
Change in price
3
Q
Factors influencing short run AS
A
Changes in costs of raw materials and energy
Changes in exchange rates
Changes in tax rates
4
Q
What is a supply side shock?
A
A significant change in any of the factors affecting short run AS
5
Q
Factors affecting long run AS
A
Technological advances
Changes in relative productivity
Changes in education and skill
Changes in government regulation
