2.3 Aggregate Supply Flashcards
1
Q
List the 5 factors influencing SRAS ( Supply side shocks)
A
Can all increase or decrease to affect cost of production:
Wages
Raw Materials
Oil prices
Business taxes
Import prices
2
Q
What are the factors affecting movement in LRAS: Q2 CELL / Productive efficiency
A
Capital
Enterprise
Land
Labour
Competition
Increase in investment
Increase in infrastructure
3
Q
A
