3.2.2 - Variations in Economic Activity - Aggregate Supply Flashcards
1
Q
Define Aggregate Supply
A
Aggregate supply is the total quantity of all goods and services the economy can produce at a given price level and in a given time period.
2
Q
Define long run
A
The long-run is the time period when the price level in the economy can change and the cost of factors of production can change.
3
Q
Represent a deflationary gap in a diagram.
A
4
Q
Represent a inflationary gap in a diagram.
A
5
Q
Represent a movement along the long-run aggregate supply curve in a diagram.
A
6
Q
Show the Keynesian supply curve
A
