What affect the LRAS curve?

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2026-08-20 07:20

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The Long-Run Aggregate Supply (LRAS) curve is primarily affected by changes in the economy's productive capacity, which can be influenced by factors such as technological advancements, labor force growth, capital investment, and improvements in education and skills. Additionally, changes in government policy that affect regulations, taxation, and infrastructure can also shift the LRAS. Unlike the Short-Run Aggregate Supply (SRAS), the LRAS is vertical, indicating that in the long run, output is determined by factors of production rather than price levels.

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