a decrease in aggregate demand results in a(n) ________ in the ________. This is a topic that many people are looking for. star-trek-voyager.net is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, star-trek-voyager.net would like to introduce to you Short-Run Aggregate Supply- Macro Topic 3.3. Following along are instructions in the video below:
“How you doing econ students. This is mr. Clifford welcome to ac dc econ today. Today.
I m going to learn about aggregate supply. The agora supply curve is going show you the production of everything inside. The entire country. It s not like the market supply.
It s not the supply of one product..
Its supply of all products. So right here. We have the price level down. Here.
We have the real gdp produced. And we have an upward sloping short run aggregate supply curve. So when the price level increases. Producers will produce more output like the market supply curve.
This curve can shift an increase is to the right and it decreases to the left..
So there s a bunch of things will shift this curve things like key resources. So there s an increase in the price of oil or steel or labor. And that would definitely change the amount we can produce another shifter would be productivity. If there s an increase in machines and technology or just machinery and capital stock.
Then this admin supply curve would shift to the right because we can produce more another shifter might be some sort of government action that affects producers like taxes or subsidies. I ve got four scenarios right here. I want you to figure out which ones will increase or decrease. A grits supply.
So go down the line pause..
The video and see how you do an increase in nominal wages would mean producers can t produce as much because there s an increase in the price of a key resource labor. So the address supply curve would shift to the left an increase in physical capital means. We have more tools and more machinery and so the address supply curve would shift to the right because we can produce more a significant decrease in corporate taxes means producers would have more money to produce more. And so that would shift the aggregate supply to the right and for the last one if everyone expects higher inflation in the future.
This is going to decrease the aggregate supply. Because business is going to have their workers come to them and demand higher wages. Because they expect higher prices. So if we expect an increase in inflation.
That s going to decrease the aggregate supply..
So up to this point. We ve been talking about the short run aggregate supply. But there s also a long run address is vertical. Not to learn about this you don t watch the next video till next time ” .
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