Video Choice-Macro 3.4- Long Run Aggregate Supply

1

Match the following.

Draggable item		Corresponding Item
Short-Run		Wages and Input Prices are Fixed
Long-Run		Wages and Input Prices are Flexible

1

Draggable item		Corresponding Item
Short-Run		Upward Sloping AS curve
Long-Run		Vertical AS Curve

1

Draggable item		Corresponding Item
Short-Run		Trade-off between inflation and unemployment
Long-Run		No trade-off between inflation and unemployment

1

1

Note, for the following video I trimmed to show only the section on LRAS.

1

1

In the long-run, regardless of the price level, our output will always be at the _______ level.

1

Draggable item		Corresponding Item
Short-Run		Fixed or Sticky resource costs and wages.
Long-Run		Flexible resource costs and wages.

1

Draggable item		Corresponding Item
Permanent Inc in resources		LRAS shifts right
Permanent Dec in resources		LRAS shifts left
Temporary Change in resources		LRAS does not change

1