a) The SRAS curve

a) the AS curve

b) the distinction between movement along, and a shift of, the AS curve

aggregate supply = total supply of all goods and services in an economy at any given average price level

short-run aggregate supply (SRAS) curve

• y-axis = average price level (PL)

• x-axis = real gross domestic product (Y)

• gradient = short-run aggregate supply (SRAS), constant and positive

change in only AP causes

• change in RGDP

• movement along the SRAS curve

AP decreases

• RGDP decreases

• contraction in RGDP

AP increases

• RGDP increases

• extension in RGDP

determinants of SRAS = factors other than AP that cause a change in SRAS

change in the value of the determinants of SRAS → shift of the SRAS curve

• SRAS decreases → SRAS curve shifts left

• SRAS increases → SRAS curve shifts right