Transcript Module 18 PowerPoint - Reading Community Schools

Module 18
Aggregate Supply:
Introduction and
Determinants
KRUGMAN'S
MACROECONOMICS for AP*
Margaret Ray and David Anderson
What you will learn
in this Module:
• How the aggregate supply curve illustrates
the relationship between the aggregate
price level and the quantity of aggregate
output supplied in the economy
• What factors can shift the aggregate
supply curve
• Why the aggregate supply curve is
different in the short run from in the long
run
Aggregate Supply
• The relationship between
the price level and the real
GDP supplied
The Short-Run Aggregate
Supply Curve
• Profit per unit of output
• Nominal Wage
• Sticky Wages
• SRAS
Shifts of the Short-Run
Aggregate Supply Curve
• ∆ Commodity Prices
• ∆ Nominal Wages
• ∆ Productivity
The Long-Run Aggregate
Supply Curve
• Flexible Wages
• Long Run
• LRAS
• Potential Output
• Factors that shift
LRAS
From the Short Run to the Long
Run