AP Macroeconomics Flashcards: Short Run Aggregate Supply Sras

What this deck covers

This deck focuses on Short Run Aggregate Supply Sras, giving you a quick way to review the definitions, rules, and examples that matter most for AP Macroeconomics.

How to use these flashcards

Work through these flashcards in short sessions. Try to answer each prompt before flipping the card, then revisit any cards you miss until the explanation feels automatic.

Flashcard 1: State the impact of a labor strike on SRAS.

Answer: Shifts SRAS curve to the left. Strikes reduce available labor and output.

Flashcard 2: Identify the impact of increased labor costs on SRAS.

Answer: Shifts SRAS curve to the left. Higher labor costs increase production expenses.

Flashcard 3: How does the SRAS curve react to a decrease in input prices?

Answer: Shifts SRAS curve to the right. Lower costs increase firms' willingness to supply.

Flashcard 4: What is the shape of the SRAS curve?

Answer: Upward sloping. Higher prices make production more profitable in the short run.

Flashcard 5: How does a decrease in oil prices affect the SRAS curve?

Answer: Shifts SRAS curve to the right. Lower input costs reduce production expenses, increasing supply.

Flashcard 6: How does SRAS respond to technological regress?

Answer: Shifts SRAS curve to the left. Worse technology increases production costs.

Flashcard 7: Does a change in aggregate demand shift the SRAS curve?

Answer: No, it affects the quantity supplied, not SRAS itself. AD affects quantity demanded, not supply conditions.

Flashcard 8: What is the definition of Short-Run Aggregate Supply (SRAS)?

Answer: SRAS shows the relationship between the price level and quantity of output supplied in the short run. Shows how firms respond to price changes when some costs are fixed.

Flashcard 9: Does a change in consumer demand shift the SRAS curve?

Answer: No, it affects aggregate demand, not SRAS. Consumer demand affects AD curve, not SRAS.

Flashcard 10: What causes movement along the SRAS curve?

Answer: Changes in the price level. Price level changes create movement along, not shifts of, the curve.

Flashcard 11: What is the relationship between SRAS and inflation expectations?

Answer: Higher inflation expectations can shift SRAS left. Expected inflation leads to higher wage demands.

Flashcard 12: Define 'sticky wages' in the context of SRAS.

Answer: Wages that do not adjust quickly to changes in economic conditions. Creates short-run rigidity in labor markets.

Flashcard 13: What effect does a supply shock have on SRAS?

Answer: Can shift SRAS curve left or right depending on the shock. Direction depends on whether shock is positive or negative.

Flashcard 14: What does the SRAS curve illustrate?

Answer: The SRAS curve illustrates the relationship between price level and output in the short run. Shows how much firms will produce at different price levels.

Flashcard 15: Identify the impact of a decrease in business taxes on SRAS.

Answer: Shifts SRAS curve to the right. Lower taxes reduce business costs.

Flashcard 16: Identify the impact of a decrease in business taxes on SRAS.

Answer: Shifts SRAS curve to the right. Lower taxes reduce business costs.

Flashcard 17: How does SRAS react to a decrease in corporate tax rates?

Answer: Shifts SRAS curve to the right. Lower taxes reduce business operating costs.

Flashcard 18: Does a change in consumer preferences shift the SRAS curve?

Answer: No, it affects aggregate demand, not SRAS. Preferences affect demand, not supply conditions.

Flashcard 19: What is the impact of an increase in capital stock on SRAS?

Answer: Shifts SRAS curve to the right. More capital increases productive capacity.

Flashcard 20: What happens to SRAS if production technology improves?

Answer: Shifts SRAS curve to the right. Better technology reduces production costs.

Flashcard 21: What is the effect of government regulation on SRAS?

Answer: Increased regulation shifts SRAS left. Compliance costs increase, reducing supply.

Flashcard 22: Does a change in aggregate demand shift the SRAS curve?

Answer: No, it affects the quantity supplied, not SRAS itself. AD affects quantity demanded, not supply conditions.

Flashcard 23: What could cause the SRAS curve to shift to the left?

Answer: An increase in production costs. Higher costs reduce profitability and supply.

Flashcard 24: How does an increase in government subsidies affect SRAS?

Answer: Shifts SRAS curve to the right. Subsidies reduce production costs, increasing supply.

Flashcard 25: What causes movement along the SRAS curve?

Answer: Changes in the price level. Price level changes create movement along, not shifts of, the curve.

Flashcard 26: State the effect of an increase in productivity on the SRAS curve.

Answer: Shifts SRAS curve to the right. Higher productivity lowers per-unit costs, increasing supply.

Flashcard 27: State the impact of a labor strike on SRAS.

Answer: Shifts SRAS curve to the left. Strikes reduce available labor and output.

Flashcard 28: How does an unexpected increase in oil prices affect SRAS?

Answer: Shifts SRAS curve to the left. Oil is a key input cost for many industries.

Flashcard 29: What is the effect of a decrease in energy costs on SRAS?

Answer: Shifts SRAS curve to the right. Energy is a major production input cost.

Flashcard 30: What is the effect of a decrease in government subsidies on SRAS?

Answer: Shifts SRAS curve to the left. Fewer subsidies increase effective production costs.

Flashcard 31: How does an increase in input prices affect SRAS?

Answer: Shifts SRAS curve to the left. Higher input costs increase production expenses.

Flashcard 32: Identify a factor that shifts the SRAS curve.

Answer: Changes in input prices. Higher input costs reduce profitability, shifting supply leftward.

Flashcard 33: How does improved worker productivity impact the SRAS curve?

Answer: Shifts SRAS curve to the right. Higher productivity reduces per-unit production costs.

Flashcard 34: State the effect of an increase in productivity on the SRAS curve.

Answer: Shifts SRAS curve to the right. Higher productivity lowers per-unit costs, increasing supply.

Flashcard 35: What effect does a supply shock have on SRAS?

Answer: Can shift SRAS curve left or right depending on the shock. Direction depends on whether shock is positive or negative.

Flashcard 36: How does the SRAS curve react to a decrease in input prices?

Answer: Shifts SRAS curve to the right. Lower costs increase firms' willingness to supply.

Flashcard 37: What is an example of a factor that does NOT shift SRAS?

Answer: A change in the price level. Price level changes cause movement along, not shifts.

Flashcard 38: How does a change in productivity affect SRAS?

Answer: Increased productivity shifts SRAS right. Higher output per worker reduces unit costs.

Flashcard 39: What happens to SRAS if business taxes increase?

Answer: Shifts SRAS curve to the left. Higher taxes increase costs, reducing firms' willingness to supply.

Flashcard 40: Describe the effect of increased regulation on SRAS.

Answer: Shifts SRAS curve to the left. More regulation increases compliance costs for firms.

Flashcard 41: Describe the effect of increased regulation on SRAS.

Answer: Shifts SRAS curve to the left. More regulation increases compliance costs for firms.

Flashcard 42: What happens to SRAS if business taxes increase?

Answer: Shifts SRAS curve to the left. Higher taxes increase costs, reducing firms' willingness to supply.

Flashcard 43: Identify the impact of increased labor costs on SRAS.

Answer: Shifts SRAS curve to the left. Higher labor costs increase production expenses.

Flashcard 44: What happens to SRAS when there is an adverse supply shock?

Answer: Shifts SRAS curve to the left. Negative shocks increase costs or reduce capacity.

Flashcard 45: How does SRAS respond to a decrease in labor productivity?

Answer: Shifts SRAS curve to the left. Lower productivity increases per-unit costs.

Flashcard 46: How does an increase in wages affect the SRAS curve?

Answer: Shifts SRAS curve to the left. Higher wages increase production costs, reducing supply.

Flashcard 47: Identify the impact of a decrease in raw material costs on SRAS.

Answer: Shifts SRAS curve to the right. Raw materials are essential production inputs.

Flashcard 48: What happens to SRAS if production technology improves?

Answer: Shifts SRAS curve to the right. Better technology reduces production costs.

Flashcard 49: What is the definition of Short-Run Aggregate Supply (SRAS)?

Answer: SRAS shows the relationship between the price level and quantity of output supplied in the short run. Shows how firms respond to price changes when some costs are fixed.

Flashcard 50: What is the effect of a decrease in nominal wages on SRAS?

Answer: Shifts SRAS curve to the right. Lower labor costs reduce production expenses.

Flashcard 51: What is the effect of a decrease in energy costs on SRAS?

Answer: Shifts SRAS curve to the right. Energy is a major production input cost.