Principles of Macroeconomics / Unit 8 MAC 0715 short lesson, about 20 seconds
What Shifts Short-Run Aggregate Supply
Captions available
The idea
Input prices are the main shifter. Higher costs for oil, wages or imported inputs shift the curve left; lower costs shift it right.
In practice
A rise in what firms pay for health coverage works like a rise in wages.
Where people slip
Input prices move the short-run curve only. They do not change what the economy could produce at full employment.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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