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From course:

Economics A Level (DONEEEEEEE)

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Question:

What are the 2 Types of Aggregate Supply? Detail them Both

Author: eric_galvao



Answer:

-Short Run Aggregate Supply [SRAS] has the Same Curve as the Supply Curve in Markets. SRAS can be Inelastic [Steep] or Elastic [Less Steep] -Long Run Aggregate Supply [LRAS] is when the Economy is at such a point of using all the Resources to Fall Capacity [On the PPF Curve] LRAS is Vertical because it is the Limit of Resources for the Nation so the Real GDP of LRAS is the Limit


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