Return to the road map.
macro in a nutshell
The AS curve

The AS curveThe AS curve is a positively sloped line in a diagram with prices P on the vertical axis and with income Y on the horizontal axis. It states that firms are willing to produce larger volumes of output at higher price levels. The AS curve can be derived by bringing together the supply-side concepts of the production function and of the labour market that were introduced previously.


Further reading on pp. 158-160.


Copyright 1997-2013, Manfred Gärtner. All rights reserved.