Question: What are the major factors causing a shift in aggregate demand (inward or outward)? What are the major factors that will affect short-run aggregate supply?

What are the major factors causing a shift in aggregate demand (inward or outward)?

What are the major factors that will affect short-run aggregate supply?

Long-run aggregate supply?

Review what factors will lead to a shift in the AD, SAS, and LRAS.

An increase in output due to economic growth will increase both short-run and long-run aggregate supply.

Unanticipated changes in either aggregate demand or aggregate supply will disrupt long-run equilibrium and cause current output to differ from the economy's long-run potential.

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