Economic Growth & Development: Aggregated Supply, Economic Growth & Macroeconomic Policy Flashcards
Two factors explain why the aggregate supply curve slipped upward in the short run
Immobile resources
Long term contractual agreements
Consider the AD - As model
What is likely to happen if there is an increase in oil prices?
The short run AS curve will be upward sloping and will shift left
Consider the AD - As model
What is likely to happen if there is an increase in oil prices?
The short-run AS curve will shift left; the long-rum AS will not shift
Consider the AD - As model
What is likely to happen if production costs are reduced due fo deregulation?
The short-run AS will soft right, and output will increase
Consider the AD - As model
What is likely to happen if government temporarily cut taxes?
The short-run AS curve will shift right, and the long-run AS curve will stay the same
Consider the AD - As model
What is likely to happen if the government temporarily increases taxes?
The short-run AS curve will shift left, and the long-run AS curve will stay the same.
