SRAS-Agg.Supply-diagram.excalidraw Unlike the Aggregate Demand Curve which shows a negative relation, In the SRAS curve, there is a positive relationship between the Price Level & Real GDP in the short term, during this time.

Movements along the curve §

Movements along the curve occur when there is a change in the level of prices (Increase or Decrease). due to the direct relationship, increases in price level mean an increase aggregate supply (right along the curve). in simple terms, an increase in price levels is a movement along the curve, just like Aggregate Demand

Shifts of the curve §

Shifts in the curve occur when there is something that affects availability of resources or the short-term costs of production.

Uses §

Uses

• Meansuring the impact of changes in costs of production in the Short-run Equilibrium.

Examples

• Rise in the exchange rate (AUD becomes more valuable)
  • There is a shift to the right, as domestic firms can use imports in the production process, allowing them to