By You Will Love Economics on youtube.com
More about this content:
In this step you'll learn about aggregate supply and its two scopes, the short-run and the long-run. Aggregate supply in macroeconomics includes the total quantity of all domestic output produced within an aggregate economy at every price level. Short-run aggregate supply assumes that wages, the cost of acquiring resources, are fixed. A change in any of the three determinants of aggregate supply, resource prices and availability, actions of government, and productivity and technology, will cause a fundamental change in aggregate supply. A rightward shift of the aggregate supply curve indicates that short-run aggregate supply has increased in the economy."