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Homework answers / question archive / The short run aggregate supply (SRAS) curve is used together with AD to explain the economy in the short-run (over the course of a few years)
The short run aggregate supply (SRAS) curve is used together with AD to explain the economy in the short-run (over the course of a few years). One or more of the following will move you up along the SRAS curve (that is, as P rises). Which one or ones? firms investing more due to lower interest rates firms investing less due to higher interest rates firms produce more due to a higher prices for produced goods O firms produce less due to a higher prices for produced goods firms cut production due to a higher price of oil (which is turned into gasoline for cars, kerosene for airplanes, and diesel for trucks) firms increase production due to a lower price of oil (which is turned into gasoline for cars, kerosene for airplanes, and diesel for trucks) prices fall and total spending rises O prices rise and total spending falls
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