Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
5 Cards in this Set
- Front
- Back
|
What is Aggregate Supply? AS and LAS |
AS - Quantity of real GDP supplied (AS) is total amount of final G and S that firms PLAN to produce. LAS - Quantity of real GDP supplied (AS) Long Run aggregate factors are long term plannign and thing. Factors and function of the below Yp = A(tech)f(N(labour)K(capital inc hum) L(land) E(entrepre talent) |
|
|
What happens at full employment? |
The real wage rate makes labour balance in quantity of demand and supply. |
|
|
What is MaE Equilibrium? |
When P/L and real GDP = Potential GDP. MA E Equalibrium. |
|
|
What can instigate changes in AS? |
Potential GDP changes, The money wage rate changes and the money prices of other resources change |
|
|
What factors change potential GDP? and what sort of supply do they change? |
Factors relating to improving living standards change Potential GDP. Yp = A(f(N,K,L,E). It's LAS change - ie long term (not small change) therefore on the graph the LAS moves to the right (not up or down). |
