Economics-A-level-Aqa
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1-economic-methodology-and-the-economic-problem4 主题
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2-individual-economic-decision-making4 主题
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3-price-determination-in-competitive-markets10 主题
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types-of-economic-integration
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protectionist-policies-quotas-and-export-subsidies
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protectionist-policies-tariffs
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protectionist-policies-an-introduction
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the-benefits-and-costs-of-trade
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international-trade
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globalisation
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types-of-supply-side-policies
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an-introduction-to-supply-side-policies
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fiscal-policy-budget-balances-and-national-debt
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types-of-economic-integration
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4-production-costs-and-revenue11 主题
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Production & Productivity
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fiscal-policy-types-of-public-expenditure-and-taxation
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fiscal-policy-an-introduction
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regulating-the-financial-system
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monetary-policy-transmission-mechanisms
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central-banks-and-monetary-policy
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commercial-and-investment-banks
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financial-assets
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financial-markets
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conflicts-between-the-macroeconomic-objectives
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price-level-global-influences
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Production & Productivity
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5-perfect-and-imperfectly-competitive-markets-and-monopolies12 主题
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price-level-deflation
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price-level-inflation
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employment-and-unemployment
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the-economic-cycle
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the-impact-of-economic-growth
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economic-growth
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the-multiplier-and-basic-accelerator-process
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macroeconomic-equilibrium
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long-run-aggregate-supply-lras
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short-run-aggregate-supply-sras
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aggregate-demand-ad
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injections-and-withdrawals-into-the-circular-flow
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price-level-deflation
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6-the-labour-market7 主题
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7-income-and-wealth-distribution4 主题
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8-the-market-mechanism-market-failure-and-government-intervention16 主题
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government-intervention-price-controls
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government-intervention-indirect-taxation-and-subsidies
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government-intervention-an-introduction
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market-failure-market-imperfections
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market-failure-merit-and-demerit-goods
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market-failure-tragedy-of-the-commons
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market-failure-positive-externalities
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market-failure-negative-externalities
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market-failure-public-private-and-quasi-public-goods
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an-introduction-to-market-failure
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the-market-price-mechanism
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government-policies-to-reduce-poverty-and-inequity
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the-problem-of-poverty
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the-lorenz-curve-and-gini-coefficient
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income-and-wealth-distribution
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discrimination-in-the-labour-market
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government-intervention-price-controls
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9-measuring-macroeconomic-performance5 主题
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10-how-the-macroeconomy-works6 主题
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11-economic-performance8 主题
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12-financial-markets-and-monetary-policy6 主题
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13-fiscal-and-supply-side-policies5 主题
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14-the-international-economy16 主题
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using-index-numbers
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analysing-changes-to-market-equilibrium
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the-determination-of-market-equilibrium
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supply-curves-real-world-analysis
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supply-curves
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demand-curves-real-world-analysis
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demand-curves
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using-behavioural-economics
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behavioural-economics
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imperfect-information
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consumer-behaviour
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production-possibility-diagrams
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scarcity-choice-and-the-allocation-of-resources
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economic-resources
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economic-activity
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economic-methodology
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using-index-numbers
short-run-aggregate-supply-sras
An Introduction to Short-run Aggregate Supply (SRAS)
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Aggregate supply is the total supply of goods/services produced within an economy at a specific price level at a given time
Diagram: Short-run Aggregate Supply (SRAS) Curve
Diagram analysis
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The SRAS curve is upward-sloping due to two reasons
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The aggregate supply is the combined supply of all individual supply curves in an economy which are also upward-sloping
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As real output increases, firms have to spend more to increase production e.g. wage bills will increase
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Increased costs result in higher average prices
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A Movement Along the SRAS Curve
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Whenever there is a change in the average price level (AP) in an economy, there is a movement along the short-run aggregate supply (SRAS) curve
Diagram: A Movement Along the SRAS Curve
Diagram analysis
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An increase in the AP (ceteris paribus) from AP1 → AP2 leads to a movement along the SRAS curve from A → B
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There is an expansion of real GDP from Y1 → Y2
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A decrease in the AP (ceteris paribus) from AP1 → AP3 leads to a movement along the SRAS curve from A → C
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There is a contraction of real GDP (output) from Y1→Y3
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Factors that Cause the Entire SRAS Curve to Shift
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Shifts in SRAS are caused by changes in conditions of supply in an economy; this usually means changes in the costs of production
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Changes in the cost of raw materials and energy
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Changes in exchange rates (E/R)
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Changes in tax rates
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Diagram: A Shift in the SRAS Curve
Diagram analysis
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A decrease in costs or increase in productivity results in a shift right of the entire curve from SRAS1 → SRAS2
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At every price level, output and real GDP have increased from Y1 → Y2
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An increase in costs or decrease in productivity results in a shift left of the entire curve from SRAS1 → SRAS3
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At every price level, output and real GDP have decreased from Y1 → Y3
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The Determinants of Short-run Aggregate Supply
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Whenever there is a change in the conditions of supply in an economy (e.g. costs of production or productivity changes), there is a shift of the entire SRAS curve
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There are multiple factors that can influence the short-run aggregate supply (SRAS). These include:
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Changes in costs of raw materials and energy
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Changes in wage rates
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Changes in tax rates
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The Influences on Short-Run Aggregate Supply (SRAS)
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Factor |
Explanation |
Impact on SRAS |
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Increase in the cost of raw materials and energy |
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Decrease in costs of raw materials/energy |
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Increase in wage rates |
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Decrease in wage rates |
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Decrease in tax rates |
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Increase in tax rates |
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