Questions tagged [aggregate-supply]

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Is there alternative to the monetary tighetning when the inflation is caused by scarcity (supply-side shocks)?

Current economic crisis is created by sharp reducing shocks to the supply side - bad economic weather, political restrictions to the trade, service availability reduction in the transportation sector. ...
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PPC's real output value

Does every point on the PPC have the same real output value? If not, then what point on the PPC does the long-run aggregate supply represent? LRAS is supposed to be vertical on the real GDP if the ...
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Effect of a rise in AS and a larger rise in AD on price level and output

In the new classical model of AD and AS, if there is a rightward shift in both AD and AS, but the increase in AD is larger, will the growth in the price level be greater than the growth in output? ...