2.3 Aggregate Supply 0.0 / 5 ? EconomicsAggregate SupplyASEdexcel Created by: tomstodd23Created on: 18-01-18 09:39 Aggregate Supply (AS) The total amount of goods and services produced and supplied by an economy's firms over a period of time. 1 of 10 Short Run Aggregate Supply (SRAS) A period of time in which the quantity of at least one factor of production is fixed. 2 of 10 Long Run Aggregate Supply (LRAS) A period of time in which the quantities of all inputs can be varied. 3 of 10 Which way does the Aggregate Supply Curve slope and why? Upwards from left to right because higher prices for goods and services make output more profitable. 4 of 10 Influences over the level of supply Wages, Technology, Costs of materials, Resource availability, Taxes, Exchange Rates. 5 of 10 Supply Side Shock Anything that affects firms' costs will cause this. 6 of 10 What causes a shift in LRAS? Technological advances; changes in relative productivity, education and skills, government regulations, migration and demographics; natural disaster. 7 of 10 Equilibrium Output This is when LRAS is equal to AD in an economy. 8 of 10 Classical Economists Adam Smith, David Ricardo, Alfred Marshall. 9 of 10 Austerity When the Government is very strict on the budget. 10 of 10
Comments
No comments have yet been made