Can anyone please explain any factors that causes a movements along the SRAS please, +rep
Causes of movements along the SRAS. Watch
- Thread Starter
- 14-05-2013 16:27
- 14-05-2013 16:30
tax, subsidy, changes in unit labour costs
- 14-05-2013 16:34
do you mean a shift in the sras curve or a movement along it?
cause a movement along is a change in price level.
a shift is a change in costs, change in amount of people in the workforce etc
lras is productivity and stuff
- 14-05-2013 16:47
OP said movement along the SRAS, meaning that it's the demand curve that's moving up or down along the SRAS
Causes of those movement would be things like monetary policy, specifically interest rate which changes demand. An increase in interest rate would mean that people have less disposable income therefore it could cause AD curve to shift inwards, which could be shown as an upward movement on the SRAS curve