- Created by: Jack Coe
- Created on: 04-06-14 09:57
Long run aggregate supply = the relationship between the total of good and services supplied (real output) and price level, when employment is full.
Technological change - the creation of new technology that can speed up the production process
Size of the labour force - a greater labour force will produce a hugher output, influenced by migration and natural rate.
Human capital - the level of output depends on the skill of the workforce, and the level of knowledge and expertise. Has an effect on productivity.
Capital stock - when there is a rise in the level of capital equipment, e,g. sewing machines, in relation to a rise in employment, then supply will increase
Raw materials - The discovery of new materials can help to raise…