2.3 (Aggregate supply)

Question 1

define Aggregate supply

Answer 1

.The total supply of goods and services in an economy in a given period of time.

Question 2

define SRAS

Answer 2

.The total supply of goods and services in an economy in a short period of time, where at least one factor of production is fixed, while others factors can change. ( in response to changes in price level)

Question 3

define LRAS

Answer 3

.The total supply of goods and services in an economy in a long time period, when all factors of production can change.

Question 4

what are the factors that shift SRAS?

Answer 4

.unit wage costs(left or right)
.labour productivity(left or right)
.supply shocks(left)
.subsidies(right)

Question 5

what are the factors that shift LRAS?

Answer 5

.aging population(left)
.quantity of factors of production(right)
.technological enhancements(right)
.improvement in education(right)
.increased migration(right)