Aggregate supply 2.3 Flashcards
1
Q
What is aggregate supply
A
Aggregate supply is the volume of goods and services produced within the economy at a given price level
2
Q
Why is the aggregate supply curve upward sloping
A
The curve is upward sloping as firms are only willing to supply more but only at a higher price
3
Q
Short run AS VS Long run AS
A
Short run aggregate supply is when at least one factor of production is fixed and cannot be changed
Long run aggregate supply is when all the factors of supply are variable
3
Q
What causes a shift in SRAS
A
The main cause of a shift of the SRAS curve is the change in cost of production
