AS Flashcards
1
Q
What causes a movement along the AS curve?
A
Only changes in the price of the good itself
2
Q
What causes a shift in AS?
A
Increase in factors of production
3
Q
What does SRAS show?
A
The total goods and services in the economy in regards to their price( general price level)
4
Q
What does LRAS show?
A
the relationship between price level and real GDP that would be supplied( the total national output)
5
Q
What shifts SRAS?
A
When firms produce more in regards to a change in price/ Changes in cost of production
6
Q
What shifts LRAS?
A
Changes in factors of production( technological advances, changes in productivity , changes in education, government regulation, migration, competition policy)
