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short run and long run aggregate supply - Coggle Diagram

- - - - country is in a war, factories are destroyed, for a long time the country will be less productive
    - - new energy source is discovered
      - a whole new source of oil is discovered that we can exploit for decades
- - - - subsidies for bussiness, bussinesses get extra money from the government which they can use to make more goods, at any given price the output will increase
      - productivity: when at any given price the productivity goes up, more output can be produced? right?
      - input prices: when the imput prices: the wages for employees suddenly increase because of new labor contracts then for any given price there will be less money available for ouput and such that will decrease.
      - tax laws, when taxes increase or decrease you could have more or less money available for output at any given aggregate price level
      - expectations on inflation by a firm: if a company thinks there will be huge inflation soon it can lower its wages and when this inflation does not happen there is more money available than can be used to produce more output
    - - sticky prices
        
        aggregate prices go up (inflation) but wages do not (labor contracts)
        
        resource prices do not go up (fixed contracts) in SHORT RUN
      - so, prices go up, and employers do not have to increase their employees salaries, KATSJING! they will increase their output and make more net revenue!
      - menu costs: when inflation occurs and all prices go up. you can decide to not raise your prices which gives you more output so if aggregate prices go up, you can sell more output.