Topic 8: Aggregate Supply & Equilibrium
Key Points
- Understand the difference between the long-run aggregate supply curve and the short-run aggregate supply curve
- Be able to describe the economics that makes the short-run aggregate supply curve upward sloping (positively related to price)
- Know the events that shift the long-run aggregate supply curve
- Know the events that shift the short-run aggregate supply curve
- Understand how the economy achieves a short-run equilibrium
- Understand how the economy achieves a long-run equilibrium
Overview Video
Short-run and Long-run Aggregate Supply
Videos
Shifting the Long-run Aggregate Supply Curves
Shifting the Short-run Aggregate Supply Curves
Short-run Equilibrium
Long-run Equilibrium