aggregate supply Flashcards
1
Q
what causes SRAS changes
A
Primary consumption of a good oil VAT Labour wage Raw materials food, paper, wood, steel Rent Cost of capital machinery Import tax Exchange rate
2
Q
what is regressive tax
A
lower income households to a greater extent
3
Q
what effects how much you can supply
A
Short: at least one fop of production is fixed - supply
Long run: all the factories if production are variable - supply
Land
Transportation- water system look at Dubai was oil sand
Labour:
Population - healthcare income immigration education - 12 - 15 years
Workforce
Hire people
Capital:
Machinery - china Germany us Africa
4
Q
What causes a shift in aggregate supply SRAS
A
Change in cost pf production Rent Oil Exchange Raw materials Wages Cost of macheriy Transport cost Productivity of labour
5
Q
what is capital stock
A
quality and quanity
