Shifts in final domestic supply are caused by internal and external factors of production. Following are the various determinants of final domestic supply or shifters of aggregate supply:. Change in Raw Material Costs: Any increase or decrease in raw material costs will directly impact production costs.A rise in raw material cost may lead to a decline in supply or an increase in commodity …
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→ WhatsApp: +86 18221755073Aggregate supply measures the volume of goods and services produced each year. AS represents the ability of an economy to deliver goods and services to meet demand. Long Run Aggregate Supply
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→ WhatsApp: +86 18221755073The aggregate supply (AS) curve shows the total quantity of output (i.e. real GDP) that firms will produce and sell at each price level. Figure 24.3 shows an aggregate supply curve. In the following paragraphs, we will walk through the elements of the diagram one at a time: the horizontal and vertical axes, the aggregate supply curve itself ...
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