Aggregate Supply - Macro Flashcards Preview

CPA - BEC > Aggregate Supply - Macro > Flashcards

Flashcards in Aggregate Supply - Macro Deck (5):

Aggregate Supply Definition

Total output of goods and services produced in economy at different price levels

Slope depends on one of three theories followed


Classical aggregate supply curve

Completely vertical supply curve; output does not change as prices change;



Horizontal up to the output at full employment then curves upward; increasing supply @ price until full employment then increased supply only with increased price


Conventional aggregate supply curve

Continous positive slope that is steeper for output after full employment; at full employment prices increase proportionally faster than output of quantity


Aggregate Equilibrium

Aggregate demand = Aggregate supply

X = Real Output
Y = Price Level

Decks in CPA - BEC Class (62):