short run aggregate supply Flashcards
1
Q
what does a rise in price level cause in sras?
A
expansion of aggregate supply
2
Q
why is the sras curve upwards sloping?
A
higher prices for goods and services make output profitable enable business to explain their product by hiring less productive labour and other resources
3
Q
what are the sras supply
A
input costs
business taxes, subsidies and imported costs
supply shocks
4
Q
what are the external factors affecting aggregate supply
A
world oil and gas prices
energy prices/costs
other mineral/metal prices
foodstuff prices
import tariffs
5
Q
what shift is it from as1 to as2
A
inward shift of short run aggregate supply
6
Q
what is it called when a shift goes from as1 to as3?
A
outward shift of short run aggregate supply
