Shifts in AS

Question 1

When costs of production change,which AS curve will shift

Answer 1

SRAS

Question 2

When quantity/quality of factors of production change,which AS curve will shift

Answer 2

LRAS (Keynesian/Neoclassical

Question 3

What effect would inward migration have on the LRAS curve and why

Answer 3

Shift it outwards as the quantity of labour is increasing

Question 4

What effect would a higher national minimum wage have on the SRAS

Answer 4

Shift inwards as firms are producing less as cost of production increases meaning producers are not able to produce as much

Question 5

What other factors causes a shift in AS

Answer 5

Shift in SRAS:
-Commodity prices (oil,gas,coal)

Shift in LRAS:
-Natural resources (land)
-Investment (improves quality of factors of production)