2.3 Aggregate Supply Flashcards
1
Q
Define aggregate supply
A
Volume of goods and services produced at any given price level
2
Q
What does LRAS show?
A
The productive potential
3
Q
What does SRAS show?
A
The current output
4
Q
What are the 3 factors affecting SRAS?
A
Changes in costs of production, changes in exchange rates, changes in tax rates
5
Q
What 6 factors affect LRAS?
A
Tech advances, productivity, education/skills, gov regulations, migration, competition policy
