AP Macroeconomics / Unit 3: National Income and Price Determination
3.3 Short-Run Aggregate Supply (SRAS)
Notes
SRAS slopes up because wages and some prices are sticky in the short run.
- Shifters: input prices (wages, oil), productivity, business taxes and subsidies, inflation expectations.
Practice
A big rise in oil prices shifts SRAS:
Higher production costs.
SRAS slopes up mainly because:
Sticky wages.
Higher productivity shifts SRAS:
Lower costs per unit.
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