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115 CFA
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115.030.30.04 Economics - Reading 14 - 4. Aggregate Supply

4. Aggregate Supply

g. explain the aggregate supply curve in the short run and long run;

What three factors does the aggregate quantity of goods and services supplied depend on?
- Y = F(L, K, T)
- L = Labor
- K = Capital
- T = Technology

What is (and what is the shape of) the short-run aggregate supply curve?
The short-run aggregate supply curve goes up-and-right, with Y-axis of Price level, and X-axis of real GDP.

What is the shape of the long-run aggregate supply curve?
The long-run aggregate supply curve is a vertical bar, with Y-axis of Price level, and X-axis of real GDP.


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