AS

Question 1

What causes a movement along the AS curve?

Answer 1

Only changes in the price of the good itself

Question 2

What causes a shift in AS?

Answer 2

Increase in factors of production

Question 3

What does SRAS show?

Answer 3

The total goods and services in the economy in regards to their price( general price level)

Question 4

What does LRAS show?

Answer 4

the relationship between price level and real GDP that would be supplied( the total national output)

Question 5

What shifts SRAS?

Answer 5

When firms produce more in regards to a change in price/ Changes in cost of production

Question 6

What shifts LRAS?

Answer 6

Changes in factors of production( technological advances, changes in productivity , changes in education, government regulation, migration, competition policy)

Question 7

What are supply side policies?

Answer 7

Supply-side policy refers to government measures, such as deregulation, tax cuts, and investment in education or infrastructure, aimed at increasing production efficiency, boosting economic growth, and improving long-term competitiveness.