Aggregate Suppy (AS)

Question 1

Factos affecting AS?

Answer 1

P
I
N
T
S
W
C

Question 2

Pints wc meaning?

Answer 2

Productivity

Indirect taxes

Number of firms

Technology

Subsidies

Weather

Cost of production

Question 3

What is aggregate supply?

Answer 3

The quantity of goods/services that supplies in an economy are willing/able to supply (at a given price/time period)

Question 4

What does the AS CURVE slope upwards?

Answer 4

As the higher the price level, the more profitable the output.

Question 5

How does price level signal businesses?

Answer 5

Price level signals businesses to expand/contract production.

Question 6

Difference between LRAS AND SRAS?

Answer 6

SRAS- output economy can generate in a short term

LRAS-maximum output an economy can produce at a sustainable level

Question 7

Position of aggregate supple curve is due to ……

Answer 7

The cost of production

Question 8

Name for factors that affect cost of production.

Answer 8

Shocks(can happen over night)

Question 9

Shocks that affect cost of production?

Answer 9

1)wages

2)raw materials

3)oil prices

4)import taxes

Question 10

what affects LRAS?

Answer 10

1)Labour productivity 4)Labour force size

2)investments. 5)competition

3)Infrastructure