When this happens, . . . | . . . short-run aggregate supply increases: | But when this happens, . . . | . . . short-run aggregate supply decreases: |
Changes in commodity prices: |
When commodity prices fall, . . . | . . . short-run aggregate supply increases. | When commodity prices rise, . . . | . . . short-run aggregate supply decreases. |
Changes in nominal wages: | | | |
When nominal wages fall, . . . | . . . short-run aggregate supply increases. | When nominal wages rise, . . . | . . . short-run aggregate supply decreases. |
Changes in productivity: | | | |
When workers become more productive, . . . | . . . short-run aggregate supply increases. | When workers become less productive, . . . | . . . short-run aggregate supply decreases. |
Changes in expectations about inflation: | | | |
If inflation is expected to be lower, . . . | . . . short-run aggregate supply increases. | If inflation is expected to be higher, . . . | . . . short-run aggregate supply decreases. |