In this lesson, our instructor Jibin Park gives an introduction on aggregate supply. He explains the short run aggregate supply, the aggregate supply curve, nominal wages and sticky wages, shifts in the aggregate supply curve, and long run aggregate supply curve.
The short-run aggregate supply shows the relationship between the aggregate price level and the quantity of aggregate output supplied in the economy
As the aggregate price level increases, the aggregate output supplied increases
In the short-run, wages tend to be “sticky” or inflexible
In the long-run, wages are flexible
There are three ways to shift the SRAS curve
Changes in Commodity Prices
Changes in Nominal Wages
Changes in Productivity
The 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
Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.
This book created a 5-step plan to help you study more effectively, use your preparation time wisely, and get your best score. This book includes two full-length practice exams modeled on the real test, all the terms and concepts you need to know to get your best score, and your choice of three customized study schedules.
This book includes an in-depth preparation for both AP economics exams. It features two full-length practice tests, one in Microeconomics and one in Macroeconomics, and all test questions answered and explained. It also features a detailed review of all test topics, which include: supply and demand, theory of consumer choice, economics in the public sector, costs, perfect and imperfect competition, monopolies, labor resources, game theory, the national income and gross domestic product, inflation and unemployment, fiscal policy, money and banking, monetary policy, economic growth, international trade and exchange, interest rate determination, and the market for loanable funds.