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CAPITAL STOCK, AGGREGATE SUPPLY DETERMINANT: One of several specific aggregate supply determinants assumed constant when the aggregate supply curves (both long run and short run) are constructed, and which shifts the aggregate supply curves when it changes. An increase in the capital stock causes an increase (rightward shift) of both aggregate supply curves. A decrease in the capital stock causes a decrease (leftward shift) of both aggregate supply curves. Other notable aggregate supply determinants include the technology, energy prices, and the wages. Capital stock comes under the resource quantity aggregate supply determinant.

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GRAPHICAL ANALYSIS

The process of investigating phenomena, especially economic phenomena, in a systematic manner using diagrams and graphs. Graphical analysis is commonly used to display abstract scientific relations, then to manipulate those relations to gain greater understanding of real world events. The market model is a primary example of graphical analysis.

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