4 good questions and answers: "The AD-AS Model - shifts of the SRAS Curve"
- Changes in commodity prices
- changes in nominal wages
- changes in productivity
- a shift of the SRAS curve to the left occurs when there is a Positive supply shock
- this will decreases the production costs, and it will increase the quantity producers are willing to supply, leading to a rightward shift of the SRAS curve.
- here they move in opposite directions, the aggregate price level decreases and the aggregate output increases
stagnation occurs when the fall in output leads to rising unemployment, while purchasing power of consumers is squeezed by rising prices
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