ECONOMICS
AGGREGATE SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Yes, I understand this from the notes
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No, I don’t understand this from the notes
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No, I don’t understand this, as I have not read the notes
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None of the above
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Detailed explanation-1: -The position of the long-run aggregate supply curve is determined by the aggregate production function and the demand and supply curves for labor. A change in any of these will shift the long-run aggregate supply curve.
Detailed explanation-2: -long-run aggregate supply (LRAS) a curve that shows the relationship between price level and real GDP that would be supplied if all prices, including nominal wages, were fully flexible; price can change along the LRAS, but output cannot because that output reflects the full employment output.
Detailed explanation-3: -The answer is-changes in labor, capital, natural resources, and technology. These are factors that change the full-employment output level. Changes in labor, capital, natural resources, and technology shift the long-run aggregate supply curve.
Detailed explanation-4: -Answer and Explanation: In the long run, the aggregate supply curve shifting is determined by the production factors. An increase in the production factors causes the curve to shift to the right, while a decline in the production factors will lead to a leftward shift.