What students need to learn:
Content
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Students should be able to:
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Additional Guidance Notes
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Aggregate Supply (AS)
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Understand the factors influencing the amount that firms are willing
to supply at various prices, for example the costs of production, the level of
investment, availability of factors of production.
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Students should be able to illustrate spare capacity in an economy.
Credit will be given for both Keynesian and classical approaches to
AS, but this distinction will not be expected.
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Movements along and shifts of the AS curve
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Explain factors that might cause a shift in AS. Factors might include:
changing costs of raw materials; a change in the level of international trade
or exchange rates; technological advances; relative productivity changes;
education and skills changes; regulation changes.
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Students should be able to show the relevant shifts in the AS curve.
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