00 o \' M inbox-nate ×?! Select a Ter × Current Stux AD-AS moc × Aplia: Stude x
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00 o ' M inbox-nate ×?! Select a Ter × Current Stux AD-AS moc × Aplia: Stude x M Natal -? https:/ courses.aplia.com/at/serviet quiz?quiz_actionstaka iz&quiz-probGuid-Q; secure Attempts: Average: /3 8. Determinants of aggregate supply The following graph shows an increase in short-run aggregate supply (SRAS) In a hypothetical economy. Specifically, aggregate supply shifts to the right from SRAS1 to SRAS2, causing the quantity of output supplied at a price level of 125 to rise from $250 billion to $350 billion. PRICE LEVEL 200 175 150 125x 100 75 50 25 0 50 100 150 200 250 300 350 400 REAL GOP (Billions of dollars The following table lists several determinants of aggregate supply. Complete the table by indicating the changes in the determinants necessary to increase aggregate supply Determinant Change Needed to Increase SRAS Natural Resources Available Supplies of Labor and Capital Input Prices Session 56:5 10Explanation / Answer
The aggregate supply curve shows the relationship between the price and output level of an economy. It describes that at a given output level how much goods and services can be produced within the economy. There are certain determinants to aggregate supply and other things remaining the same a change in this determinants shifts the aggregate supply curve.
Natural Resources- An increase in the quality and quantity of natural resources shifts the aggregate supply curve to the right and increases the AS curve.
Supply of Labour and Capital- An increase in the quality and quantity of the land, capital and labour shifts the AS curve to the right and increases the AS curve.
Input Prices - A decrease in the prices of input shifts the AS curve to the right and increases the AS curve.
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