PRICE LEVEL 200 175 150 125 100 75 50 25 0 0 50 100 150 200 250 300 350 400 REAL GDP (Billions of dollars) SRAS₁ Determinant Prices of Nonlabor Inputs Stock of Capital Goods Technology The following table lists several determinants of aggregate supply. Fill in the table by indicating the changes in the determinants necessary to increase aggregate supply. SRAS₂ Improve Change Needed to Increase Short-Run Aggregate Supply

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter24: The Aggregate Demand/aggregate Supply Model
Section: Chapter Questions
Problem 3SCQ: The short run aggregate supply curve was constructed assuming that as the price of outputs...
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This graph shows an increase in aggregate supply in a hypothetical economy where the currency is the dollar. Specifically, the short-run aggregate supply curve (SRAS) 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
125
100
75
50
25
0
0
50
11
100 150 200 250 300
REAL GDP (Billions of dollars)
SRAS₁
Determinant
Prices of Nonlabor Inputs
Stock of Capital Goods
Technology
350 400
The following table lists several determinants of aggregate supply. Fill in the table by indicating the changes in the determinants necessary to increase
aggregate supply.
Improve
SRAS2
Change Needed to Increase Short-Run Aggregate Supply
Transcribed Image Text:PRICE LEVEL 200 175 150 125 100 75 50 25 0 0 50 11 100 150 200 250 300 REAL GDP (Billions of dollars) SRAS₁ Determinant Prices of Nonlabor Inputs Stock of Capital Goods Technology 350 400 The following table lists several determinants of aggregate supply. Fill in the table by indicating the changes in the determinants necessary to increase aggregate supply. Improve SRAS2 Change Needed to Increase Short-Run Aggregate Supply
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