7b Aggregate Supply

Question 1

SRAS curve (2)

Answer 1

sticky, shows relationship aggregate price level and aggregate output supplied in economy short run

Question 2

Nominal Wage

Answer 2

dollar amount of the wage paid without considering inflation.

Question 3

Sticky Wages

Answer 3

nominal wages, slow to fall in face of high unemployment, slow to rise in the face of labor shortages.

Question 4

LRAS curve

Answer 4

shows the relationship between aggregate price level and the quantity of aggregate output supplied that would exist if all prices, including nominal wages, were fully flexible.

Question 5

SRAS determinants (2)

Answer 5

Input prices
   - commodity (decrease)
   - nominal wages (decrease)
   - expected inflation (decrease)
productivity

Question 6

LRAS determinants (2)

Answer 6

resources, technology