Aggregate Supply (AS) represents the total amount of goods and services that producers in an economy are willing and able to supply at a given overall price level and period. It plays a critical role in determining economic growth, employment, and inflation. Unlike Aggregate Demand, which focuses on spending, Aggregate Supply is influenced by factors such as production costs, availability of resources, labor market conditions, and technological advancements. This project challenges students to create a skit that creatively explains the concept of Aggregate Supply, its determinants, and how it interacts with Aggregate Demand to shape economic outcomes.

Students will begin by researching Short-Run Aggregate Supply (SRAS) and Long-Run Aggregate Supply (LRAS) and understanding the differences between them. SRAS is affected by factors like wage levels, input prices, and temporary shocks, while LRAS depends on the economy’s productive capacity and long-term growth factors like technology and investment in human capital. They should also explore how supply-side policies, inflation, and external shocks (like oil price changes or pandemics) can shift AS curves.

A key focus of this project is presenting these concepts in an engaging and theatrical way. Students will create a short skit that illustrates how Aggregate Supply reacts to different economic scenarios. For example, they could depict a factory responding to higher wages or lower material costs, a government enacting policies to increase productivity, or an economy dealing with external shocks that restrict supply. The skit should demonstrate how AS shifts and interacts with AD, leading to inflation, stagnation, or growth depending on the scenario.

The final skit should simplify economic principles in a fun and educational way, making complex topics memorable and easy to understand. The goal of this project is for students to enhance their comprehension of Aggregate Supply through an interactive and creative learning experience.