Aggregate Supply- Macro Topics 3.3 and 3.4

Jacob Clifford explains aggregate supply, focusing on short-run and long-run curves. He discusses factors that shift the supply curve, such as resource prices, government actions, and productivity changes. The video highlights the difference between short-run and long-run effects on supply, emphasizing the importance of understanding these concepts for exams. Practice scenarios are provided to reinforce learning.

Explain how a change in the price of resources affects the aggregate supply curve.

What are the main shifters of the aggregate supply curve?

Describe the concept of supply shocks and provide examples.

What is the difference between the short-run aggregate supply curve and the long-run aggregate supply curve?

Discuss the relationship between aggregate supply and full employment.

How does an increase in nominal wages impact the short-run aggregate supply curve?

What happens to the aggregate supply curve when people expect higher prices in the future?