March 23, 2018 

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Y-AXIS: In a graph, this is one of two lines that intersect at a right angle. This is the "vertical axis" that runs up and down.

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SUPPLY SPACE: The area on or above a supply curve. Sellers are willing and able to sell any price-quantity supplied combination that places them on or above the supply curve, but not below. The reason is that the supply curve represents the minimum supply price for a given quantity supplied or the maximum quantity supplied for a given supply price.

     See also | supply | supply price | quantity supplied | supply curve | supply space | producer surplus |

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A shock to the long-run aggregate market caused by a decrease in aggregate supply, resulting in and illustrated by a leftward shift of the long-run aggregate supply curve. A decrease in aggregate supply in the long-run aggregate market results in an increase in the price level and a decrease in real production. The level of real production resulting from the shock is a smaller level of full-employment real production.

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