Aggregate Supply - Short Run Flashcards
1
Q
Shifts in the short-run AS curve can occur due to changes in firms’ ___________ ________
A
Production costs
2
Q
Factors influencing short-run AS
A
Changes in costs of raw materials and energy
Changes in exchange rates
Changes in tax rates
3
Q
If the costs of raw materials and energy increase - supply will _________
A
Increase
4
Q
A sudden appreciation of the pound would _________ the costs of imports for UK firms, shifting the AS curve to the _________
A
Decrease
Right
5
Q
Altering the tax rates on goods can also affect a firm’s costs. A fall in the tax rate would be expected to shift the AS curve to the ________
A
Right
6
Q
Factors influencing long-run AS:
A
Technological advances Relative productivity Education and skills Government regulation Demographic changes and migration Competition policy
