aggregate supply

Question 1

AS indicatates…

Answer 1

the ability of an economy to produce goods and services and shows the relationship between the ​real GDP​ and the ​average price levels​.

Question 1

aggragate supply

Answer 1

the ​volume of goods and services produced within the economy at a given price level.

Question 2

SRAS

inelastic or elastic?

Answer 2

elastic

output is relatively responsive to a change in price- it changes by a bigger percentage than price). An increase in output by firms is likely to lead to an increase in costs which leads to a rise in prices as they pass these costs onto consumers