2.3.1 - The characteristics of AS

Question 1

Define Aggregate Supply Curve

Answer 1

. Aggregate supply is the total VALUE of goods and services produced in an economy.

The curve show the relationship between the average level of prices in the economy and the level of total output

Question 2

Name two types of Aggregate Supply Curve

Answer 2

. Short Run Aggregate Supply (SRAS)

. Long Run Aggregate Supply (LRAS)

Question 3

What causes MOVEMENT along the aggregate supply curve?

Answer 3

Movement along the aggregate supply curve occurs, when the average price level of the economy changes

Change in real output also causes movement along the aggregate supply curve, as the average price level changes