Macro 4 - Determinates of AD and SRAS Flashcards
1
Q
What causes a shift in aggregate demand?
A
C + I + G + (X - M)
2
Q
What causes a shift to short run aggregate supply?
A
PINTSWC
3
Q
What is the definition of short run aggregate supply?
A
The total quantity of all goods and services firms in an economy are willing to produce at a range of price levels, assuming there is fixed availability of factors of production
4
Q
What is aggregate demand?
A
Total demand for a country’s goods and services at a range of price levels over a given period of time
