Aggregate Supply (Edexcel A-Level Economics A): Flashcards
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Aggregate supply
Aggregate supply
Total output of goods & services in economy over time period
SRAS curve characteristic
SRAS curve characteristic
Upward sloping
SRAS: Price level change causes
SRAS: Price level change causes
Movement along curve
SRAS: Production cost increase causes
SRAS: Production cost increase causes
Leftward shift
Exchange rate appreciation & SRAS
Exchange rate appreciation & SRAS
Shifts SRAS right (lower import costs)
Classical/monetarist LRAS shape
Classical/monetarist LRAS shape
Vertical at full employment
Classical view: AD policy long-run effect
Classical view: AD policy long-run effect
Only affects prices, not real output
Keynesian LRAS shape
Keynesian LRAS shape
Horizontal then steeper near full employment
Technology advances effect on LRAS
Technology advances effect on LRAS
Rightward shift
Migration effect on LRAS
Migration effect on LRAS
Rightward shift (expands workforce)