Aggregate Demand and Aggregate Supply - Aggregate Supply
3 important questions on Aggregate Demand and Aggregate Supply - Aggregate Supply
What is the relationship between the economy's aggregate price level, and the total quantity of final goods and services or aggregate output producers are willing to supply at.
The aggregate supply curve
What does a positive relationship between the price level and the quantity of output supplied show us? Or why is the Aggregate supply curve upward sloping?
- A rise in the in the aggregate price level leads to an increase in the quantity of output supplied
- A fall in the in the aggregate price level leads to an fall in the quantity of output supplied
How does a rise in productivity whatever the source (K,H,N,T), shifts the short-run aggregate supply curve?
- A rise in productivity whatever the source (K,H,N,T),
- increases the number of units of output a worker can produce with the same quantity of inputs
- cost of output falls
- increases the producers' profits
- aggregate supply increases
- shifts the short-run aggregate supply curve to the right
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Topics that are related to Aggregate Demand and Aggregate Supply - Aggregate Supply
-
Aggregate Supply - The Short Run Aggregate supply curve - shift of the short run Aggregate supply curve
-
Aggregate Supply - The Short Run Aggregate supply curve - changes in the nominal wages
-
Aggregate Demand and Aggregate Supply - Aggregate Supply - the Long Run Aggregate supply curve
-
Aggregate Demand and Aggregate Supply - Aggregate Supply - from Short Run to Long Run
