Aggregate Supply

When a single producer supplies a product, we calculate their output on the basis of equivalent demand. However, think of the larger picture: let’s say the national level of supply in your country. To understand this, we need to know the aggregate supply, which is the total national output produced in an economy over a given time. This explanation will take you through the aggregate supply, the changes in the short and long-run aggregate supply, and the interaction of aggregate demand and aggregate supply. Keen to find out more? Read on!

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Who suggested the other concept of LRAS?

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Name two types of aggregate supply.

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What are the types of the output gap?

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Which is the vertical aggregate supply curve?

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Who suggested the other concept of LRAS?

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Name two types of aggregate supply.

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What are the types of the output gap?

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Which is the vertical aggregate supply curve?

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Flashcards in Aggregate Supply 4

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Who suggested the other concept of LRAS?

Keynesians.

Name two types of aggregate supply.

Short-run and Long-run

What are the types of the output gap?

Positive output gap
Negative output gap

Which is the vertical aggregate supply curve?

The long-run aggregate supply curve

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Frequently Asked Questions about Aggregate Supply

What is aggregate supply?

Aggregate supply is a measure of the total volume of goods and services produced in the economy over a given time.

What are the determinants of aggregate supply?

The determinants of aggregate supply mainly affect the production side of the economy and include: costs of production, labour productivity, technical progress, and others.

What shifts the aggregate supply curve?

When there is a change in the factors that affect the supply-side of the economy like production costs, labour productivity, technical progress, and others.

What are the two types of aggregate supply?

The two types of aggregate supply are:

Short-run aggregate supply.
Long-run aggregate supply.

How do you find the aggregate supply curve?

To draw the aggregate supply curve you have to take into account other factors like the short or long run because those factors change the curves.

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