Unit 3.2 · Variations in Economic Activity: Aggregate Demand and Aggregate Supply
Shifts of the LRAS or Keynesian AS Curve
AO2AO4Diagram required
Syllabus Requirement
Shifts occur due to changes in quantity/quality of factors of production, productivity, or institutions.
Assessment Objectives
AO2Application and Analysis
AO4Use of Appropriate Skills
Summary
This topic discusses the shifts in the Long-Run Aggregate Supply (LRAS) and Keynesian Aggregate Supply (AS) curves. Understanding these shifts is important for analyzing how supply-side improvements can affect the economy's output and price levels over the long term.