Page 48 - FINAL CFA SLIDES DECEMBER 2018 DAY 5
P. 48
Session Unit 4:
15. Aggregate Output, Prices & Economic Growth, p.52
LOS 16.g: Explain the aggregate supply curve in the short run and long run., p. 61
Wages and other input prices change proportionally to the price
level, so the price level –no effect on aggregate supply
Output prices increase but not inputs prices!
Adjust output without changing price by adjusting labor
hours and intensity of use of plant and equipment in
response to changes in demand
