2.3 Aggregate supply (AS)

Question 1

a) The AS curve

Question 2

b) The distinction between movement along, and a shift of,
the AS curve

Question 3

c) The relationship between short-run AS and long-run AS

Question 4

a) Factors influencing short-run AS:

Answer 4

o changes in costs of raw materials and energy
o changes in exchange rates
o changes in tax rates

Question 5

a) Different shapes of the long-run AS curve:

Answer 5

o Keynesian
o classical

Question 6

b) Factors influencing long-run AS:

Answer 6

o technological advances
o changes in relative productivity
o changes in education and skills
o changes in government regulations
o demographic changes and migration
o competition policy