Unformatted text preview: GDP that arises when the economy is fully employing all of its available input resources. Changes in aggregate supply. Changes in aggregate supply are represented by shifts of the aggregate supply curve. An illustration of the ways in which the SAS and LAS curves can shift is provided in Figures 2 (a) and 2 (b). A shift to the right of the SAS curve from SAS 1 to SAS 2 of the LAS curve from LAS 1 to LAS 2 means that at the same price levels the quantity supplied of real GDP has increased . A shift to the left of the SAS curve from SAS 1 to SAS 3 or of the LAS curve from LAS 1 to LAS 3 means that at the same price levels the quantity supplied of real GDP has decreased...
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This note was uploaded on 11/18/2011 for the course ECO 1310 taught by Professor Staff during the Fall '10 term at Texas State.
- Fall '10