aggregate supply
- Created by: ishah
- Created on: 11-05-13 10:06
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- AS
- SRAS
- 1 factor fixed
- relationship real GDP + price level
- generate output in short-run
- price ^ - supply expansion
- price down - supply contract
- shifts SRAS
- cost of production
- raw material prices
- taxes
- labour productivity
- factor mobility
- economic shocks
- exchange rate
- non-linear - rise in demand met easily - elastic
- LRAS
- located at potential GDP
- independent of price
- all resources fully employed
- located at potential GDP
- changes LRAS
- labour supply
- stock capital inputs
- investment
- quality
- advance in techno
- SRAS
- cost of production
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