00:01
There's several reasons for why the short run aggregate supply curve may shift.
00:04
And let's go over just a couple of them, starting with rightward shifts in the supply curve.
00:08
So it might shift to the right if we see an increase in production technology or an improvement in production technology, meaning we can produce more at a lower cost.
00:18
It might also shift to the right if there is a decrease in input costs, meaning that, again, we can produce more at a lower cost.
00:27
Now, the short run aggregate supply curve may shift to the left if we see an increase in these input costs, because now we are producing more at these higher costs, and we don't want to do that, so we'll choose to then produce less.
00:43
Now, it might also shift to the left if, say, we have exceptionally bad weather, meaning if there's some natural disaster that causes, you know, nationwide for supply to drop because we just simply cannot produce what we once were, that could certainly cause the supply curve to shift to the left...