Friday December 21

Review Concepts:

• Aggregate Supply
• Short Run (SRAS)
• AD/SRAS Equilibrium

Resources:

• Finding AD/SRAS Equilibrium - Complete in class
• Answers to above handout

Short Run Definition – The period of time when costs of production do not change. When producers see prices going up they will increase production. Since costs have not changed, they will secure more of a profit.

Power Point - Short Run Aggregate Supply

Khan Academy Video - Short Run Aggregate Supply
    Don't worry about the long run stuff yet

Homework:

• Read Chapter 15 on Aggregate Supply

•