What Shifts LRAS To The Right? The long run aggregate supply curve (LRAS) is determined by all factors of production – size of the workforce, size of capital stock, levels of education and labour productivity. If there was an increase in investment or growth in the size of the labour force this would shift the
How Does Stagflation Affect Aggregate Demand? Stagflation is a combination of stagnant economic growth, high unemployment, and high inflation. … In a normal market economy, slow growth prevents inflation. As a result, consumer demand drops enough to keep prices from rising. Stagflation can only occur if government policies disrupt normal market functioning. What does stagflation
What Causes The Aggregate Supply Curve To Shift? A shift in aggregate supply can be attributed to many variables, including changes in the size and quality of labor, technological innovations, an increase in wages, an increase in production costs, changes in producer taxes, and subsidies and changes in inflation. What are the 3 determinant that