AP: Aggregate Supply and Determinants Flashcards

5335859198	Aggregate Supply Curve	Shows the relationship between the aggregate price level and the quantity of aggregate output supplied in the economy.	0
5335874905	Aggregate Price Level	A measure of the overall level of prices in the economy	1
5335877462	Aggregate Output	The economy's total production of final goods and services for a given time period, usually a year.	2
5335885452	Real GDP	The numerical measure of aggregate output typically used by economists.	3
5335896066	Nominal Wage	The dollar amount of the wage paid.	4
5335898790	Sticky Wages	Nominal wages that are slow to fall even in the face of high unemployment and slow to rise even in the face of labor shortages.	5
5335908339	Short-run Aggregate Supply Curve	Shows the relationship between the aggregate price level and the quantity of aggregate output supplied that exists in the short run, the time period when many production costs can be taken as fixed.	6
5335951490	Long-Run Aggregate Supply Curve	Shows the relationship between the aggregate price level and the quantity of aggregate output supplied that would exist if all prices, including nominal wages, were fully flexible.	7
5335966408	Potential Output	The level of real GDP the economy would produce if all prices including nominal wages were fully flexible.	8
5335984791	Determinants of Short-Run Aggregate Supply	Factors that cause the short-run aggregate supply curve to shift to the left or the right.	9
5336001789	Decrease in Short-Run Aggregate Supply	Producers reduce the quantity of aggregate output they are willing to supply at any given aggregate price level. (left shift of SRAS)	10
5336012501	Increase in Short-Run Aggregate Supply	Producers increase the quantity of aggregate output they are willing to supply at any given price level. (right shift of SRAS)	11
5336040699	Commodity	A standardized input bought and sold in bulk quantities.	12
5336068375	Productivity	A measure of the amount of output produced with a given amount of productive factors; normally it refers to labor but it can apply to all factors of production.	13