Shifting the Long-Term Aggregate Suply

Question 1

changes in factors of production

Answer 1

can cause the long run aggregate supply (LRAS) curve to shift. these changes can occur in the form of quantity or quality

Question 2

land

Answer 2

• quantity = reclamation of previously unusable land

- quality = improvements to land use

Question 3

labor and management

Answer 3

• quantity = additional workforce through immigration

- quality = improvement in workforce due to education

Question 4

capital

Answer 4

• quantity = investment in the means of production

- quality = technological innovation in the means of production through research and development

Question 5

note

Answer 5

any significant improvement in the factors of production can result in a shift to the right for the LRAS curve

Question 6

shift right

Answer 6

• increase in quality of capital

Question 7

the third part of the Keynesian LRAS Curve and the Classical Curve are the same. This means the effects of shifts are what

Answer 7

exactly the same

Question 8

shift to left represents what

Answer 8

an economic recession

Question 9

improvement on the quantity of labor

Answer 9

immigration numbers have increased

Question 10

shift to the left

Answer 10

decrease in quality of laborers

Question 11

improvement occur with any of the four factors of production, what occurs with the real output

Answer 11

shifts right

Question 12

NOT a factor

Answer 12

improve quality of entrepreneurship

Question 13

improvement of quality of capital

Answer 13

research and development