Page 50 - FINAL CFA SLIDES DECEMBER 2018 DAY 5
P. 50
Session Unit 4:
15. Aggregate Output, Prices & Economic Growth, p.52
LOS 16.h: Explain causes of movements along and shifts in aggregate demand and supply curves., p. 64 - 65
SRAS
1. Labor productivity
2. Input prices
3. Expectations of future output prices
4. Taxes and government subsidies
5. Exchange rates
LRAS, p.65 - 66
1. Supply and quality of labor
2. Supply of natural resources
3. Stock of physical capital
4. Technology
Movement Along AD and AS Curves, p.66
Movements along AD/AS reflect the impact of a change in the price level on the quantity
demanded and the quantity supplied.
Changes in the price level alone do not cause shifts in the AD and AS curves, although we
have allowed that changes in expected future prices can.
