Aggregate Supply
shows the level of domestic output firms collectively desire to produce at different general price level
Shape
horizontal range
vertical range
intermediate range
resource constraint, factor costs rises more rapidly than total output
unemployment of spare capacity, firms can employ resources
full employment of resources
Shift
factors that causes shift
horizontal
vertical
prices of factor inputs
Exchange rate
Government policies
indirect tax rate
givernment regulation
Government policies (affecting quantity of resources)
change in quality of labor input
Incidence of natural disasters
Change in technology
effects of shift on
Horizontal AS
Vertical AS
changes in UCOP
changes in productive capacity