8 min read
This study guide covers Short-Run Aggregate Supply (SRAS), including its definition, upward-sloping nature, and relationship with real GDP. It explains the RAP factors (Resource prices, Actions of government, and Productivity/Technology) that shift the SRAS curve. It differentiates between movements along the SRAS curve (due to price level changes) and shifts of the curve. Finally, it provides practice scenarios and questions to test understanding of SRAS concepts.
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Question 1 of 8
Feeling confident? 😎 Which of the following best describes the Short-Run Aggregate Supply (SRAS) curve?
Vertical at full employment
Downward sloping
Upward sloping due to sticky wages
Horizontal at the current price level