i know that productivity shock moves it to the left. i just read that high anticipated inflation moves it to the left. anything else?
Increases in labor productivity, capital, or technology shift it to the right. Decreases shift to the left.
willispierre Wrote: ------------------------------------------------------- > Increases in labor productivity, capital, or > technology shift it to the right. Decreases shift > to the left. thanks. wages only have a short term “hit” to supply right?
correct. wage rates and factors of production only move AS in the short run (increases in prices, shift SAS to the left).
willispierre Wrote: ------------------------------------------------------- > correct. wage rates and factors of production > only move AS in the short run (increases in > prices, shift SAS to the left). thank you man, you really know your sh$$. I cant beleive some of this stuff is sticking. i have literally gone thru 25 + highlighters in the last month.
yeah, i feel like everything has come together. i wish the exam was tomorrow…
i’m kind of ok with aggregate demand, aggregate supply and inflation and gov. policy effects. now on to firm and industry curves. ughhhh!!!