supply curve

How Does A Change In The Money Prices Of Resources Affect Aggregate Supply?

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How Does A Change In The Money Prices Of Resources Affect Aggregate Supply? When potential GDP increases, aggregate supply increases and the AS curve shifts rightward. … A rise in the money wage rate or other resource prices decreases short-run aggregate supply and shifts the AS curve leftward. How do resource prices affect aggregate supply?

Does Demand Create Own Supply?

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Does Demand Create Own Supply? Does demand create own supply? Summary. Keynes’ Law states that demand creates its own supply. Say’s law states that supply creates its own demand. Who says demand creates its own supply? Keynes’ Law states that demand creates its own supply; changes in aggregate demand cause changes in real GDP and