Work through the list without notes. If you cannot do a statement, follow its link, then come back. Guide = study guide; Practice = practice questions.
Understanding
- I can define the SRAS curve and say what “short run” means in macroeconomics. (Guide: “What the SRAS curve shows”)
- I can explain why sticky wages and prices make the SRAS curve slope upward, without using the law of supply. (Guide: “Why the SRAS curve slopes upward”; Practice Q1)
- I can list the determinants of SRAS and say which direction each one shifts the curve. (Guide: “What shifts the SRAS curve”; Practice Q2)
- I can explain why a rise in expected inflation shifts SRAS to the left. (Guide: “What shifts the SRAS curve”; Practice Q2, Q7(a))
Skills
- I can draw an SRAS curve with the axes labelled price level and real GDP, and show a shift with SRAS₁ and SRAS₂. (Guide: Figures 1 and 2; Practice Q5)
- I can read a new SRAS schedule after a shift and find the output supplied at a given price level. (Guide: Worked example 2; Practice Q4)
- I can calculate the inflation rate and the unemployment rate for two points on an SRAS curve. (Guide: Worked example 1; Practice Q6)
- I can calculate a real wage when the nominal wage is fixed and the price level rises. (Guide: Worked example 1(c); Practice Q7(b))
Reasoning
- I can tell a movement along SRAS from a shift of SRAS, and tell an SRAS shift from an AD shift. (Guide: Worked example 2 “Check”; Practice Q2, Q7(a))
- I can explain why moving up the SRAS curve raises employment and lowers unemployment when the labour force is fixed. (Guide: Worked example 1; Practice Q3, Q6(c))
- I can describe the short-run trade-off between inflation and unemployment. (Guide: Worked example 1(d); Practice Q6(d))
All ticked? Move on to the long-run aggregate supply study guide, or return to the course roadmap.