Studied by 1 person Input prices
refer to the costs of the essential resources needed to produce goods and services.
Productivity
measures the efficiency with which inputs (like labor and capital) are used to produce output.
Technology advancements
refer to innovations that improve processes, products, or services.
Government regulations
include rules and laws that businesses must follow, while taxes are mandatory payments to the government.
 Expectations of future prices
relate to how businesses and consumers anticipate price changes, including inflation.
Natural disasters or severe weather events
such as hurricanes, earthquakes, or droughts, can disrupt economic activities.
The labor force’s size and skill level
are essential to an economy’s productive capacity.
Capital stock
represents the accumulated assets (such as machinery, factories) used in production.
Investment
includes spending on new capital.
Exchange rates
are the value of one currency relative to another and play a significant role in international trade.
Natural resources
are raw materials that come from the environment, such as minerals, water, and energy sources, that are critical for production.
Resource scarcity
can lead to higher costs and reduce production capacity, lowering aggregate supply and potentially increasing prices for consumers.
Overuse or depletion
can lead to resource shortages and impact aggregate supply in the future.
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Flashcard (32)