Aggregate Supply and Aggregate Demand

Ok guys and gals, please state what causes movement ALONG the AD & AS curves please state what causes movement SHIFTS of the AD & AS curves -Rou

roumancesoiree Wrote: ------------------------------------------------------- > Ok guys and gals, > > please state what causes movement ALONG the AD & > AS curves > > please state what causes movement SHIFTS of the AD > & AS curves > > -Rou I suck at econ, I think just a price change causes MOVEMENT on the AD curve

movement along, people allow price of final goods and products to change shift AD: any change in C+I+G+NX AS: quantity of capital quantity of labour technology

yeah I know PRICE level changes of FINAL PRODUCT causes movement along the curve, but does anything else cause a movement along the curve? Just to make sure real wage rates (+/-) causes shifts of AS right?

it has slipped my mind for the time being, hence the reason I am studying econ tomorrow lol

haha, theres a lot of reading in econ and you have to connect everything together to make it all work. GL on your econ getter

thanks rouman, what else causes movements along, when you say it i will probably want to slap myself for forgetting lol

I think its Price level, I thought there was something else, but I m not sure. But I believe its just price level of final product. Can someone confirm please? Rou

I am amount 99% sure that is what it is. if supply decreases and consumers allow the final prices of goods and services to change, then it will just be a movement along the demand curve. if someone could verify would be very helpful :slight_smile:

Hmmm, does Philips say anything else?

ummmm not that I know of, could be wrong though.

Movement along the AS supply occurs when there is a shift in the AD curve and the suppliers haven’t had a chance to adjust the factor prices. Thus when aggregate demand increases the firms increase production due to the higher prices. Movement along the AS curve

krisC Wrote: ------------------------------------------------------- > Movement along the AS supply occurs when there is > a shift in the AD curve and the suppliers haven’t > had a chance to adjust the factor prices. Thus > when aggregate demand increases the firms increase > production due to the higher prices. Movement > along the AS curve that makes sense, same logic for AD curve?