2.3.2 SRAS

• What causes a shift in the AS curve?

  A range of other factors beyond price level
• What defines the short run in terms of production factors?

  At least one factor of production is fixed
• Which factors are fixed in the short run AS curve?

  Money wage rates, factor prices, technology
• What is the long run in terms of production factors?

  All factors of production are variable
• What is the main cause of a shift in short-run AS?

  A change in the cost of production
• How do changes in raw material costs affect SRAS?

  Higher costs shift SRAS left
• What impact do exchange rates have on SRAS?

  Weaker pound increases import prices
• How did Brexit affect inflation in the UK?

  It caused a fall in the pound, raising import prices