Short-Run Aggregate Supply (Edexcel A Level Economics A)

As the price of input costs rise, fewer goods/services can be produced with the same amount of money

SRAS decreases - shifts left

As the price of input costs decrease, more goods/services can be produced with the same amount of money

SRAS increases - shifts right

Producers often import raw materials
Stronger currency = cheaper imports
Cheaper imports = decrease in input costs
Lower costs = more output

SRAS increases - shifts right

Producers often import raw materials
Weaker currency = more expensive imports
More expensive imports = increase in input costs
Higher costs = less output

SRAS decreases - shifts left

Taxes represent an additional cost for firms
Decreasing taxes =  decrease in costs
Lower costs = more output

SRAS increases - shifts right

Taxes represent an additional cost for firms
Increasing taxes =  increase in costs
Higher costs = less output

SRAS decreases - shifts left