Short-run Aggregate Supply Curve: The short-run aggregate supply curve shows the relationship between the price level and the quantity of goods and services firms are willing to produce in the short run, assuming all input prices remain constant.
Positive Supply Shock: A positive supply shock refers to an unexpected event that increases the availability of key resources or decreases production costs, leading to an increase in aggregate supply. This can result in lower prices and higher output levels in the short run.
Aggregate Supply: Aggregate supply represents the total amount of goods and services that producers are willing and able to provide at different price levels. It is influenced by factors such as resource availability, technology, and production costs.