SRAS example

• What is SRAS?

  Short-run aggregate curve
• how does SRAS curve?

  slopes up from left to right
• how does SRAS change with price level?

  Increase in the price level, increase in amount of output firm willing to supply

  
  

  produce more goods/services
• SRAS Model

  
• what happens when SRAS is price inelastic?

  SRAS curves slope steeply upwards
• What happens when SRAS is price elastic?

  SRAS curve less steep