Aggregate Supply Flashcards
1
Q
Define AS curve
A
The total value of output domestic producers are willing and able to produce at a specific price level over a given period of time
2
Q
What’s the difference between SRAS and LRAS
A
LRAS : measure of the economy’s potential output, similar to PPF
SRAS: shows output when prices and productivity of all factors of production are fixdd
3
Q
SRAS
A
Period of time when the money wage rates and the price of all other factor inputs in the economy are fixed
Upwards sloping, ceteris paribus, the higher the PL, the higher the Q produced
4
Q
Shifts of SRAS ( supply side shocks)
A
Wage rates Raw material and other input prices Indirect tax and regulation Oil prices Import prices Exchange rates Productivity
