Table : TABLE 2 DETERMINANTS OF SHORT-RUN AGGREGATE SUPPLY (THE SHORT-RUN AGGREGATE SUPPLY CURVE SHIFTS WHEN THESE CHANGE)
TABLE 2 DETERMINANTS OF SHORT-RUN AGGREGATE SUPPLY (THE SHORT-RUN AGGREGATE SUPPLY CURVE SHIFTS WHEN THESE CHANGE)
DeterminantSRAS IncreasesSRAS Decreases
Changes in Input PricesPrices declinePrices rise
Changes in Productivity

  • Technology

    		• ImprovementsReductions

  • Changes in human capital

    		• ImprovementsReductions
    Changes in Taxes and Regulations

  • Tax rates

    		• LowerHigher

  • Subsidies

    		• HigherLower

  • Change in burdensome regulations

    		• ReductionsAdditions
    Change in Market PowerReductionsIncreases
    Changes in Inflationary ExpectationsLowerHigher