The long-run aggregate supply (LRAS) curve shifts due to changes in factors that affect an economy's productive capacity. These factors include improvements in technology, increases in the labor force, changes in capital stock, and enhancements in productivity. For example, advancements in technology can lead to more efficient production processes, shifting the LRAS to the right. Conversely, natural disasters or significant declines in the labor force can shift the LRAS to the left, indicating a decrease in potential output.
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