2.3.1 Flashcards
1
Q
What is aggregate supply?
A
The volume of goods and services produced within an economy at a given price level.
2
Q
What does long run aggregate supply represent?
A
The maximum possible output in an economy
3
Q
What does aggregate supply indicate about an economy?
A
The ability to produce goods and services and shows the relationship between the real GDP and average price levels.
4
Q
What are the two main groups of economists?
A
Keynesians and classical economists.
5
Q
What are the keynesians view of aggregate supply?
A
They don’t distinguish between short run and long run aggregate supply, preferring to cover it as aggregate supply as a whole.
6
Q
What are the neo-classical economists view of aggregate supply?
A
Distinguish between short run and long run.
