Exam (elaborations)
riggers unit 3 test| Questions and 100% Complete Solutions
- Course
- Institution
riggers unit 3 test| Questions and 100% Complete Solutions
[Show more]
Seller
Follow
Content preview
riggers unit 3 test| Questions and 100%Complete Solutions
aggregate supply - ✔the total amount of goods and services (real gdp) firms
will produce at different price levels. Supply of everything from firms
short run aggregate supply - ✔wages and resource prices will not increase as
price levels increase. they are "sticky"
long run aggregate supply - ✔wages and resource prices will increase as price
levels increase
Short run aggregate supply curve - ✔
shifters of aggregate supply - ✔1. Change in resource prices
- price of domestic/imported goods
- supply shocks
- inflationary expectations
2. change in actions of the
government - taxes on producers
-subsidies for domestic producers
NOT GOV SPENDING
3. change in productivity
-technology
, long-run aggregate supply curve - ✔shows the relationship between the aggregate
price level and the quantity of aggregate output supplied that would exist if all
prices, including nominal wages, were fully flexible
real gdp does not change, but price level does.
shifts in lras - ✔- change in resource quantity/quality
- changes in tech/productivity
PERMENENT changes in production possiblities
recessionary gap, inflationary gap and full employment - ✔below full employment/
ppc curve is recessionary (negative output gap)
above/beyond full employment/ ppc curve is inflationary (positive output gap)
full employment is at potential output gap
stagflation - ✔A period of falling output and rising prices (WORST OUTCOME)
Causes of inflation - ✔demand pull: pulls up prices
cost push: Higher production costs increase prices
capitol stock - ✔General term referring to a corporation's stock used in
obtaining capital (owner financing).
economic growth - ✔when the LRAS shifts to the right permenantly
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller KenAli. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
80796 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now