Topic 8: Aggregate Supply & Equilibrium

Key Points

  1. Understand the difference between the long-run aggregate supply curve and the short-run aggregate supply curve
  2. Be able to describe the economics that makes the short-run aggregate supply curve upward sloping (positively related to price)
  3. Know the events that shift the long-run aggregate supply curve
  4. Know the events that shift the short-run aggregate supply curve
  5. Understand how the economy achieves a short-run equilibrium
  6. Understand how the economy achieves a long-run equilibrium

Overview Video

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