Understanding Aggregate Supply: Short Run Perspective

The video tutorial explores aggregate supply, distinguishing between short run and long run factors. It introduces classical and Keynesian models, focusing on short run aggregate supply where factor prices are fixed. The tutorial explains how shifts in short run supply are caused by changes in costs, such as wage rates and raw materials. It also covers supply side shocks, using the 2014 oil price drop as an example. The video concludes with a preview of upcoming topics on long run aggregate supply.

What is the significance of the real GDP output method in observing the supply side of the economy?

What are the implications of an inward shift in the short run aggregate supply curve?

How do changes in wage rates affect the short run aggregate supply curve?

Discuss the impact of exchange rates on short run aggregate supply.