3. Aggregate Supply Flashcards
1
Q
AS
A
The volume of goods and services provided by the economy at a given price level
2
Q
Factors influencing short run AS
A
-changes in costs or raw materials and energy
-changes in exchange rates
-changes in tax rates
-shocks
3
Q
long run AS
A
In the long run there is a limit on how much supply can be increased as the economy is at full capacity where all resources are fully utilised
4
Q
Factors influencing long run AS
A
-technological advances
-changes in relative productivity
-changes in education and skill
-changes in government regulation
-demographic changes and migration
-competition policy
