Asked by Rebekah Turner on Jul 01, 2024
Other things the same, what happens to the price level and the quantity of output when the short run aggregate supply curve shifts to the right?
Short Run Aggregate Supply
The total supply of goods and services that businesses in an economy plan on selling during a short time period, assuming that the prices of resources do not change.
Price Level
A mean value of present prices for all goods and services in the economy, indicating the level of inflation or deflation.
Quantity of Output
The total amount of a particular good or service that is produced by a firm or economy.
- Recognize the association between aggregate demand and aggregate supply curves in dictating the balance in the economy over different periods.
Learning Objectives
- Recognize the association between aggregate demand and aggregate supply curves in dictating the balance in the economy over different periods.