Give Examples of Factors That Decrease Short-Run Aggregate Supply

question 331

Essay

Give examples of factors that decrease short-run aggregate supply. Which way does the SAS curve shift?

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Definitions:

Cheques

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or the person named on it.

Lockbox System

A lockbox system is a service offered by banks to companies for the receipt of payment from customers, under which the payments are directed to a special post office box rather than to the company.

Daily Interest Rate

A method of calculating interest where the rate is applied to the principal on a daily basis.