Aggregate Supply (AS) Flashcards
(4 cards)
1
Q
What is Short-Run Aggregate Supply (SRAS)?
A
Costs fixed in the short term.
2
Q
What factors can cause shifts in SRAS?
A
Changes in wage rates, raw material prices, exchange rates, and productivity.
3
Q
What is Long-Run Aggregate Supply (LRAS)?
A
Dependent on supply-side factors: labour, capital, enterprise, technology.
4
Q
Shifts in LRAS
A
Improved productivity
Investment in capital
Education and training
Technological advances
