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7. Determinants of aggregate supply The following graph shows a decrease in aggregate supply (AS) in a hypothetical economy where the currency is the dollar.
7. Determinants of aggregate supply The following graph shows a decrease in aggregate supply (AS) in a hypothetical economy where the currency is the dollar. Specifically, aggregate supply shifts to the left from AS1 to AS2, causing the quantity of output supplied at a price level of 100 to fall from $200 billion to $150 billion. ? 200 AS2 175 AS 150 125 PRICE LEVEL 100 75 50 25 50 100 200 250 300 350 400 QUANTITY OF OUTPUT The following table lists several determinants of aggregate supply. Fill in the table by indicating the changes in the determinants necessary to decrease aggregate supply. Change Needed to Decrease AS Input prices Human capital Burdensome regulations
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