What factors can cause shifts in the long-run aggregate supply curve?

Economics Aggregate Demand And Supply Questions



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What factors can cause shifts in the long-run aggregate supply curve?

There are several factors that can cause shifts in the long-run aggregate supply curve. These include changes in the availability and cost of production inputs such as labor, capital, and raw materials. Technological advancements and improvements in productivity can also shift the curve to the right, increasing the potential output of the economy. Changes in government regulations and policies, such as taxes and regulations on businesses, can also impact the long-run aggregate supply curve. Additionally, changes in the size and quality of the labor force, as well as changes in the level of education and skills of workers, can also cause shifts in the long-run aggregate supply curve.