Aggregate Supply

Question 1

Increase short run

Answer 1

Increase an FoP

Question 2

Increase long run (2)

Answer 2

Increase capacity and productive potential of economy
Increase quality and quantity of FoP

Question 3

PPF long run and short run

Answer 3

Shift to production line = SR
Shift outward from PPF curve = Long run

Question 4

SRAD growth (2)

Answer 4

Demand side factors
Reduced IR = increased investment + consumption

Question 5

SRAS growth (3)

Answer 5

Any factor that reduces production costs
Fall in price of oil = reduced costs to firm = increased SRAS
Fall in wages as well