AS Flashcards
1
Q
What are the diferent supply side shocks that can occur?
(costs of production)
A
- Wage changes
- Raw material/commodity prices
- Oil prices
- Corp tax
- Import prices (SPICED/WIDEC)
2
Q
Factors that cause a shift in LRAS ( and a movement?)
A
- changes in labour quantity/productivity
- Investment
- Infrastructure
- competition
- New resource discoveries
always mention investment in exams with examples of how itd change q2/ prod efficiency
