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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.
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:
Inflation expectations (higher/lower)
Human capital (improves/declines)
Technology (improves/declines)
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