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Tutor2u economics - Coggle Diagram
Tutor2u economics
4.2.2.2
Consumption - Consumption is the act of using resources to satisfy current needs and wants. It is seen in contrast to investing, which is spending for acquisition of future income.
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Investment - Investment is traditionally defined as the "commitment of resources to achieve later benefits". If an investment involves money, then it can be defined as a "commitment of money to receive more money
4.2.2.3
Shifts in SRAS are caused by changes in conditions of supply in an economy; this usually means changes in the costs of production
Whenever there is a change in the average price level (AP) in an economy, there is a movement along the short-run aggregate supply (SRAS) curve
Whenever there is a change in the conditions of supply in an economy (e.g. costs of production or productivity changes), there is a shift of the entire SRAS curve
Aggregate supply is the total supply of goods/services produced within an economy at a specific price level at a given time
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