Th2.3: Long-run AS Flashcards
1
Q
In the short run, supply can be increased by offering overtime, but in the long run…
A
there will be a limit on how much supply can be increased
2
Q
What happens to supply once labour productivity is maximised?
A
supply cannot be increased any further
3
Q
How does the LRAS curve differ from the SRAS regarding wage rates?
A
wage rates are variable and can change
4
Q
What are the two different types of long run aggregate supply curve?
A
classical
Keynesian
