Short-run Aggregate Supply Flashcards
1
Q
Determinants of SRAS
A
The main cause of a shift in SRAS is a change in business costs, such as:
- changes in unit labour costs
- changes in other production costs
- commodity prices
- exchange rates
- government taxation and subsidies
- the price of imports
- short run shocks to production.
2
Q
External factors affecting Aggregate Supply
A
- world oil and gas prices
- energy prices/costs
- other mineral/metal prices
- foodstuff prices
- import tariffs/quotas
3
Q
Shifts and movements
A
A change in the price level brought about by a shift in AD results in a movement along the SRAS curve.
