Aggregate Supply And Aggregate Demand

Question 1

What is long-run aggregate supply

Answer 1

Is the relationship between the quantity of real GDP supplied and price level when real GDP equals potential GDP

Question 2

What is short-run aggregate supply

Answer 2

Is the relationship between the quantity of real FDP supplied and the price level when money wage rate, the prices of other resources, and potential GDP remain constant

Question 3

When do changes in aggregate supply occur ?

Answer 3

It changes if an influences on production plans other than price level occur