Flashcards
aggregate supply
Flashcards do conjunto (5)
- 1what is aggregate supply?aggregate supply shows the quantity of real GDP which is supplied at different levels of price. It gets to a point where firms reach full capacity, called full employment.
producers are willing to supply more so that they can earn profits - 2what causes AS Shifts?Government regulation or intervention, such as environmental laws
and taxes, and business regulation
changes in prices of commodities- rise in oil, increased COP.
less investment, less capital stock or training, cost of production rise.
FX: cheaper imports..
cut in tax, means more supply - 3difference between short run and long run aggregate supply?short run aggregate supply covers period directly after change,
it shows planned output of an economy after a change, assuming all other factors stay the same
for lras:
The curve is vertical, because supply is assumed not to change as the price
level changes - 4what are the different shapes of LRASkeynsian- curved
neo-classical - vertically straight - 5factors influencing long run ASTechnological advances:
If more money is spent on improving technology, cost of production is reduced, more efficient
Changes in education and skills:
human capital, more productive and wider variety of goods and services.
productivity increase
regulations- governments making firms act competitively rather than as monopolies,
demographic
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- Descrição
- A level Economics (Macroeconomics theme 2) FlashCards sobre aggregate supply , criado por Daniel Nnajiuba em 31-10-2018.
- Criado por
- Daniel Nnajiuba · out 2018
- Atualizado
- 23 set 2019
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