Short-run Aggregate Supply Equation
{"Image DocumentName": "Short-run Aggregate Supply Equation", "Image ImageDescription": "Y = Y + a (P-Pe) where a > 0. Output. Natural. rate of output. Expected. price level. positive constant: an indicator of. how much. output responds. to unexpected. changes in the. price level. Actual price level. This equation states that output deviates from its natural rate when the. price level deviates from the expected price level. The parameter a. indicates how much output responds to unexpected changes in the price. level, 1/a is the slope of the aggregate supply curve.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}