2.6 determinants of long-run aggregate supply Flashcards
1
Q
what are the fundamental determinants of aggregate supply
A
technology productivity attitudes - eg women entering workforce enterprise factor mobility economic incentives
2
Q
what does the position of the vertical LRAS curve represent
A
the normal capacity level of output in the economy
3
Q
what does a rightward shift of the LRAS indicate
A
it signals economic growth as there is an increase in the productive capacity of the economy
4
Q
how does the Keynesian AS curve differ from the traditional one
A
it is a reverse L shape
