aggregate suppluy Flashcards
1
Q
what is aggregate supply
A
the quantity of all goods and services producers in an economy are willing and able to supply in a given period of time.
2
Q
long run
A
the period in which all factors of productions are variable
3
Q
short run
A
the period in which at least one factor of production is fixed
4
Q
what is SRAS
A
the relationship between planned national output and the general price level
5
Q
what happens when there is rise in general price level
A
this stimulates an expansion of aggregate supply as business respond to the profit motive.
6
Q
A
