Alternative Views Of Aggregate Supply As Hl Ib Economics Revision Religious studies. past papers. spanish. revision notes on 3.2.3 alternative views of aggregate supply (as) for the hl ib economics syllabus, written by the economics experts at save my exams. The alternative views of aggregate supply provide a comprehensive framework for understanding how economies respond to various stimuli. the classical view emphasizes long run full employment and self correction, the keynesian view focuses on short run market imperfections and the effectiveness of demand side policies, and the monetarist view.
Alternative Views Of Aggregate Supply As Hl Ib Economics Revision The classical view of long run aggregate supply (lras) with a vertical aggregate supply curve at the full employment level of output (y fe) diagram analysis. using all available factors of production, the long term output of this economy (lras) occurs at y fe; the economy is initially in equilibrium at the intersection of ad 1 and lras (p 1, y fe). 2.2 aggregate supply. definition: aggregate supply is the total value of goods and services produced in an economy over a given period of time. short run aggregate supply (sras) sras slopes upwards because as prices increase, it becomes more profitable for firms to increase their output and new firms start producing. What does aggregate supply (as) refer to? space the total quantity of goods and services that producers are willing and able to supply at a given price level in a given period. 1. the use of logic. when analysing markets, a range of assumptions are made about the rationality of economic agents involved in the transactions. in classical economic theory, the word 'rational' means that economic agents are able to consider the outcome of their choices and recognise the net benefits of each one.
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