Aggregate Supply And Aggregate Demand Flashcards
1
Q
What is long-run aggregate supply
A
Is the relationship between the quantity of real GDP supplied and price level when real GDP equals potential GDP
2
Q
What is short-run aggregate supply
A
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
3
Q
When do changes in aggregate supply occur ?
A
It changes if an influences on production plans other than price level occur