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Start studying Determinants of Aggregate Demand and Supply. Learn vocabulary, terms, and more with flashcards, games, and other study tools.
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Factors such as consumption spending, investment, government spending, and net exports that, if they change, shift the aggregate demand curve. Aggregate Supply A schedule or curve showing the total quantity of goods and services supplied at different price levels. Start studying Aggregate Demand & Aggregate Supply. Learn vocabulary, terms, and more with flashcards, games, and other study tools.
Because the short-run aggregate supply curve is the only version of aggregate supply that can handle BLANK changes in the price level and real output, it serves well as the core aggregate supply curve for analyzing the business cycle and economic policy. Short-run aggregate supply curve: An aggregate supply curve relevant to a time period in which input prices (particularly nominal wages) do not change in response to changes in the price level. Long-run aggregate supply curve: The aggregate supply curve associated with a time period in which input prices (especially nominal wages) are fully responsive to changes in the price level.