lesson 16 - short run aggregate Flashcards
1
Q
short run aggregate supply
A
graphic model of positive relationship between aggregate price level and amount of aggregate output supplied in economy
2
Q
short run
A
a period in which at least one factor of production cannot change –> wages cant change that is short run
3
Q
sticky prices /wages
A
AKA nominal price ridgity
idea that some prices/wages are not fully flexible and cannot change immediatly
4
Q
menu costs
A
the idea that firms don’t change prices when there is change because it is costly to change the prices
5
Q
determinants of sras
A
anything that SHIFTS THE CURVE
6
Q
expectations
A
what firms think will happen to the price of factors of production
