Edexcel A Level Economics A:復(fù)習(xí)筆記2.3.2 Short-run AS
Factors Influencing Short-run AS
- There are multiple factors that can?influence?the?short-run aggregate supply (SRAS). These include:
- Changes in costs?of raw materials and energy
- Changes in?exchange rates (E/R)
- Changes in?tax rates
A Table That Explains The Influences On Short-run Aggregate Supply (SRAS)
| Change in Condition | Explanation | Impact on SRAS |
| Increase in costs of raw materials/energy | As the price of input costs rise, fewer goods/services can be?produced with the same amount of money | SRAS decreases - shifts left |
| Decrease in costs of raw materials/energy | As the price of input costs decrease, more goods/services can be?produced with the same amount of money | SRAS increases - shifts right |
| Appreciation of E/R | Producers often import raw materials Stronger currency =?cheaper imports Cheaper imports =?decrease in input costs Lower costs = more output |
SRAS increases - shifts right |
| Depreciation of E/R | Producers often import raw materials Weaker currency =?more expensive imports More expensive imports =?increase in input costs Higher costs = less output |
SRAS decreases - shifts left |
| Decrease in tax rates | Taxes represent an additional cost for firms Decreasing taxes = ?decrease in costs Lower costs = more output |
SRAS increases - shifts right |
| Increase in tax rates | Taxes represent an additional cost for firms Increasing taxes =??increase in costs Higher costs = less output |
SRAS decreases - shifts left |
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