This blog has been created to provide an area for economics students to read about how economics impacts daily life. It is especially useful for students to understand the application of macroeconomics as communicated through the media and governmental websites.

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Brief description: When aggregate supply falls the supply curve shifts to the left. Here a Keynesian aggregate supply curve is shown.

Detailed description: Keynesians believe that the aggregate supply curve will be the same in the short and long run, and so a decrease in aggregate supply will shift the edge of the curve to the left. This may be caused by a change in productivity, changes in the tax and benefit system or some other factor affecting the amount of output that can be produced in the economy.