APMac Unit 3 Lesson 2 - Short-Run and Long-Run Aggregate Supply (Module 18) by jclerch https://padlet.com/jclerch/aj9yaiw6cuk1 National Income and Price Determination en-us 2017-01-01 17:34:24 UTC 2023-05-05 06:49:51 UTC hello@padlet.com https://padlet-uploads.storage.googleapis.com/135439946/9801a45acfb5e999c67109c1fa7e2e59/IMG_12291_1mb.png jclerch https://padlet.com/jclerch/aj9yaiw6cuk1/wish/145179257 2017-01-03 21:44:44 UTC https://padlet.com/jclerch/aj9yaiw6cuk1/wish/145179257 Questions jclerch https://padlet.com/jclerch/aj9yaiw6cuk1/wish/245834361 1. Why do we differentiate between short run aggregate supply and long run aggregate supply?

2. Why is short run aggregate supply upward sloping? 

3. What is the relationship between long run aggregate supply and the natural rate of unemployment? 

4. What is the relationship between long run aggregate supply and price level? 
]]> 2018-03-25 14:59:38 UTC https://padlet.com/jclerch/aj9yaiw6cuk1/wish/245834361 jclerch https://padlet.com/jclerch/aj9yaiw6cuk1/wish/277192391 2018-09-03 00:22:43 UTC https://padlet.com/jclerch/aj9yaiw6cuk1/wish/277192391 jclerch https://padlet.com/jclerch/aj9yaiw6cuk1/wish/277192425 2018-09-03 00:23:02 UTC https://padlet.com/jclerch/aj9yaiw6cuk1/wish/277192425 jclerch https://padlet.com/jclerch/aj9yaiw6cuk1/wish/324306507 2019-01-25 13:43:09 UTC https://padlet.com/jclerch/aj9yaiw6cuk1/wish/324306507 jclerch https://padlet.com/jclerch/aj9yaiw6cuk1/wish/324306550 2019-01-25 13:43:14 UTC https://padlet.com/jclerch/aj9yaiw6cuk1/wish/324306550 Essential Knowledge jclerch https://padlet.com/jclerch/aj9yaiw6cuk1/wish/372385534 The short-run aggregate supply (SRAS) curve describes the relationship between the price level and the quantity of goods and services supplied in an economy.

The SRAS curve is upward-sloping because of sticky wages and prices. 

Any factor that causes production costs to change, such as a change in inflationary expectations, will cause the SRAS curve to shift.

In the long run all prices and wages are fully flexible, while in the short run some input prices are fixed. A consequence of flexible long-run prices and wages is the lack of a long-run trade-off between inflation and unemployment.

The LRAS curve corresponds to the production possibilities curve (PPC) because they both represent maximum sustainable capacity. Maximum sustainable capacity is the total output an economic system will produce over a set period of time if all resources are fully employed. 

The LRAS curve is vertical at the full-employment level of output because in the long run wages and prices fully adjust.
]]> 2019-07-26 13:27:36 UTC https://padlet.com/jclerch/aj9yaiw6cuk1/wish/372385534 Enduring Understanding jclerch https://padlet.com/jclerch/aj9yaiw6cuk1/wish/372385590 Economists use the aggregate demand–aggregate supply model to represent the relationship between the price level and aggregate output in an economy and to illustrate how output, employment, and the price level respond to macroeconomic shocks.]]> 2019-07-26 13:28:18 UTC https://padlet.com/jclerch/aj9yaiw6cuk1/wish/372385590 Learning Objectives jclerch https://padlet.com/jclerch/aj9yaiw6cuk1/wish/372385627 Define (using graphs as appropriate) the short-run aggregate supply (SRAS) curve.

Explain (using graphs as appropriate) the slope of the SRAS curve and its determinants.

Explain (using graphs as appropriate) how movement along the SRAS curve implies a relationship between the price level (and inflation) and unemployment.

Define (using graphs as appropriate) the short run and the long run.

Define (using graphs as appropriate) the long-run aggregate supply (LRAS) curve.
]]> 2019-07-26 13:28:51 UTC https://padlet.com/jclerch/aj9yaiw6cuk1/wish/372385627 jclerch https://padlet.com/jclerch/aj9yaiw6cuk1/wish/409164260 2019-11-10 15:12:17 UTC https://padlet.com/jclerch/aj9yaiw6cuk1/wish/409164260 Introduction to Lesson jclerch https://padlet.com/jclerch/aj9yaiw6cuk1/wish/1106432323 2021-01-20 16:13:01 UTC https://padlet.com/jclerch/aj9yaiw6cuk1/wish/1106432323