aggregate supply

Question 1

aggregate supply

Answer 1

the level of real nationa;l output that producers are prepared to supply at different average price levels

Question 2

how is the position of the SRAS supply determined

Answer 2

costs of production
increase in CoP SRAS curve shifts left

Question 3

CoP depends on

Answer 3

-wages
-raw materials
-oil prices
-business taxes
-import prices

Question 4

LRAS

Answer 4

vertical to represent one level of output the economy will always produce in the long run and the level of output is Yfe (full employments level of output) - represents the max level of output an economy can produce using all FoP at sustainable levels
over Yfe is unsustainable - training too hard

Question 5

LRAS depends on

Answer 5

quality and quantity of FoP

Question 6

aggregate demand increases effects

Answer 6

-growth increases
-unemplyment decreases
-inflation increases
-trade position worsens

Question 7

aggreagate supply increases effects

Answer 7

-growth increases
-unemployment decreases
-inflation decreases
-trade position improves