Social Sciences and History / Unit 15 SSH 1409 short lesson, about 20 seconds
What Shifts AS; Stagflation
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The idea
Aggregate supply shifts right as productivity rises, and left as the price of key inputs rises. A leftward AS shift brings lower output, higher unemployment and higher inflation together: stagflation. A rightward shift can bring lower inflation, higher output and lower unemployment.
In practice
An oil shock as the classic leftward push.
Where people slip
Stagnation and inflation at once.
Your place on the trail
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Builds on
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