2.3.1

Question 1

Short Run Aggregate Supply

Answer 1

Refers to the total amount of goods and services that al firms within an economy are willing and able to produce at different price levels in the short run, assuming other factors remain constant.

Question 2

Long Run

Answer 2

All factors of production are variable

Question 3

Short Run

Answer 3

Period of time when at least one factor of production is fixed.

Question 4

SRAS curve

Answer 4

Upwards sloping they shows a positive/ direct relationship between REAL GDP of the country and general price level.

Question 5

Short Run Period

Answer 5

Money wages and the price of all other factor inputs in the economy are fixed.