2.3.1

Question 1

Aggregate supply

Answer 1

Shows the quantity of real GDP at which is supplied at difference price levels in the economy

Question 2

SRAS

Answer 2

Short run is the period of time when at least one factor of production is fixed
- covers the period immediately after a change in the price level
- shows the planned output of an economy when prices change
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Question 3

LRAS

Answer 3

All factors of production are variable
Shows the potential supply of an economy in the long run
Vertical