## mariomintchev 3 years ago Explain and demonstrate on a graph how each of the following events would affect the short-run aggregate supply curve.

1. mariomintchev

a) An increase in the price level b) A price level that is currently higher than expected c) An unexpected increase in the price level of an important raw material

2. mariomintchev

@Chlorophyll

3. Laura*

...if you posted this in econ before you posted it in mathematics, you wouldn't be getting the First Question tab here. You can post a link in the math chat asking for help. I'm really not happy with you right now.

4. Laura*

5. mariomintchev

I asked for help in the economics chat before I posted my question in the math section.

6. mariomintchev

I posted my question in the maths section because everyone's always there. Plus economics is math related.

7. Laura*

You didn't post this in the economics group, however

8. Laura*

Not really, no. There's some math component, but all econ questions need to be posted in in the econ section

9. mariomintchev

ok i got that. you said that like 10 times. its not like ive done this a million times and ive aggravated you because of that.

10. Laura*

Actually, I've said it two or three times. You are at a high enough level to know the rules of OpenStudy, ergo I hold you to a higher standard. I've found a website that should help you. Take a look here: http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=short-run+aggregate+supply+curve

11. Laura*

If you still need help, let me know!

12. mariomintchev

i need help with the graphing mainly

13. mariomintchev

|dw:1332732549158:dw| s=supply d=demand

14. mariomintchev

the point can move and the lines can shift forward and backwards.

15. Laura*

Not on a SRAS curve. Take a look at the site. SRAS curves tend to be bowed out, it's not the basic supply/demand curve.

16. mariomintchev

|dw:1332732735283:dw||dw:1332732756340:dw|

17. mariomintchev

or like that

18. Laura*

Not exactly.

19. Laura*

|dw:1332732923098:dw| The y axis is "GDP Price Deflator" So when the price level changes, you will move along the curve, not shift it.

20. mariomintchev

yeah i know that. i was just saying that it can shift too, but not when price level just changes.

21. Laura*

Well, that's not what the question is asking so...

22. mariomintchev

i was just informing people that wanna help and are unfamiliar.

23. Laura*

A price level that is unexpectedly high will do nothing to the supply curve. It'd change the demand curve, but we aren't looking at the demand curve OR the price point, just supply.

24. Laura*

Let's see, that answers 2 of the three questions. So that leaves: c) An unexpected increase in the price level of an important raw material

25. Laura*

|dw:1332733970903:dw| Now, I'm awful at drawing in our draw tool, but when the raw material/resource quality, quantity, or price changes, it'll cause a shift in the SRAS curve. If the quantity or quality goes down or the price goes up, supply will decrease and the graph will move to the left. If the quantity or quality increases or the price decrease, the overall supply will increase and the graph will shift to the right.

26. mariomintchev

i dont understand why the point moves at times but at others the whole thing shifts

27. Laura*

So it depends on if there's something that changes the supply in the short term. That would cause the supply curve to shift. Changing the price level doesn't affect the supply being made, so there's just a change along the curve.

28. mariomintchev

i need help with graphing the following:

29. mariomintchev

starting from the long-run equilibrium, use the static aggregate demand and aggregate supply diagram to show what happens both in the long run and the short run when real gross domestic product (GDP) n the US rises slower than real GDP in foreign countries.

30. Laura*

Ye gods, we have officially hit my limit of knowledge, sorry!! I don't really know even where to look. It sounds like this is macroeconomics, which I didn't take a lot of. I'm going to ping @cshalvey, who, while not online right now, has a distinct advantage on me in this: he majored in Econ.