Aggregate Supply (AS) Flashcards
(7 cards)
1
Q
What is the aggregate supply?
A
The total value of output of goods & services that domestic firms as a whole produce and sell at each given price level.
2
Q
Why is the aggregate supply upward slopping?
A
AS curve links the level of RNY/output to the GPL. Its shape is determined by the degree of spare capacity in the economy.
3
Q
How and why is the AS curve’s nature deduced?
A
4
Q
How does the aggregate supply reflect total supply of goods and services in the economy?
A
5
Q
How does the AS curve move?
A
6
Q
What are the price determinants of the AS curve?
A
7
Q
What are the non-price determinants of the AS curve?
A
