Aggregate Supply Definitions

  1. Aggregate Supply
    The level of real national output that producers are prepared to supply at different average price levels
  2. Short-run Aggregate Supply (SRAS)
    Aggregate supply when the level of capital is fixed though the utilisation of existing factors of production can be altered so as to change the level of real output
  3. Long-run Aggregate Supply (LRAS)
    Aggregate supply when the economy is producing at its production potential. If more factors of production become available or productivity rises, the LRAS curve shifts to the right
  4. Deflation
    A persistent or continuing fall in the average price level
  5. Technical Progress
    New and better ways of doing things
Card Set
Aggregate Supply Definitions
Aggregate Supply Definitions