3.2 Aggregate Supply (AS)

• Higher input prices decrease Aggregate Supply.


  True
• Higher productivity increases the Short-run Aggregate Supply.


  True
• Government policies can affect Aggregate Supply.


  True
• The LRAS curve is vertical, indicating that the price level does not affect output in the long run.


  True
• Higher input prices lead to a decrease in Aggregate Supply.

  True
• What does the Short-run Aggregate Supply (SRAS) curve represent?

  Real output and price level
• What does the Long-run Aggregate Supply (LRAS) curve represent?

  Sustainable output at full employment
• How does technological improvement affect the LRAS curve?

  Shifts LRAS to the right
• What impact does an increased labor force have on the LRAS curve?

  Shifts LRAS to the right
• The Short-run Aggregate Supply (SRAS) curve is influenced by factors such as productivity, input prices, and taxes
• The SRAS curve represents the relationship between real output supplied and the price level
• The Long-run Aggregate Supply (LRAS) curve represents the level of output when all resources are fully employed
• Technological advancements increase the LRAS
• Subsidies increase the SRAS and shift it to the right.


  True
• An increase in AS leads to a lower equilibrium price level and higher real output
• The SRAS curve is upward sloping because at least one factor of production is fixed.


  True
• The SRAS reflects the short-run, while the LRAS reflects the long run
• Higher productivity leads to higher AS
• The SRAS curve represents the relationship between output and the price level.
• The SRAS curve is upward sloping due to at least one fixed factor of production.
• The Long-run Aggregate Supply (LRAS) curve represents output at full employment.
• A higher capital stock shifts the LRAS curve to the right.
• Higher productivity increases the SRAS curve.
• The upward slope of the SRAS curve is due to at least one fixed factor of production.


  True
• The LRAS curve signifies the potential output at full employment.


  True
• Technological improvements leading to higher productivity cause a rightward shift in the SRAS curve.

  True
• A decrease in AS leads to a higher equilibrium price level and lower real output.


  True
• Higher productivity leads to an increase in Aggregate Supply
• Higher taxes shift the SRAS to the left.


  True
• Factors such as labor, capital, technology, and natural resources can shift the LRAS
• Higher input prices shift the SRAS to the left
• An increase in capital stock shifts the LRAS to the right.


  True
• When AS decreases, firms sell less at each price level, driving up prices
• Under high demand, SRAS can shift left due to rising input prices.


  True
• What does Aggregate Supply (AS) refer to in economics?

  Total quantity of goods and services
• How do technological advancements affect Aggregate Supply?

  Increase AS
• What impact do higher taxes have on the SRAS curve?

  Decrease SRAS
• What does the Short-run Aggregate Supply (SRAS) curve assume?

  At least one fixed factor
• What happens to the LRAS curve if the labor force increases?

  Shifts to the right
• What role do technological advancements play in the economy according to Aggregate Supply theory?

  Increase AS