680216
Description
Mind Map by Harry Moore, updated more than 1 year ago
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Created by Harry Moore
almost 11 years ago
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Short term and long term growth
- In the short term A move in
aggregate demand
(consumption) this is short
term because the productive
potential capacity of the
economy has not increased
in size. It can also be shown
through an increase in the
short run aggregate supply
curve.
- In the long
term there is
an increase in
the productive
potential of the
economy, so
aggregate
supply goes
out. Shown
with an
increase in the
long run
aggregate
supply curve.
- This causes a
shift in the PPF
curve outwards
(the ppf curve
shows the
maximum
production
potential of the
economy)
- An increase
in the long run
aggregate
supply curve
is illustrated
through a shift
outwards in
the PPF curve.
- This causes a
shift in the PPF
curve outwards
(the ppf curve
shows the
maximum
production
potential of the
economy)
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