Distinguish Between a Movement Along the Aggregate Supply Curve and a Shift

question 107

Essay

Distinguish between a movement along the aggregate supply curve and a shift of the entire aggregate supply curve.What factors cause each to occur?

---

Definitions:

Nominal Interest

The stated interest rate of a financial instrument, not accounting for inflation or compounding effects.

Compounded Semi-annually

Interest calculation method where the invested sum earns interest twice a year, and this interest is added to the principal for the computation of future interest.

Semi-annual Deposits

Deposits that are made twice a year into a financial account.

Retirement Fund

Financial resources that have been saved or accumulated to support a person's living expenses after they cease working.