Year 12 Recap - LRAS Curve
This Year 12 Recap video covers the basics around the Long-Run Aggregate Supply Curve.
The LRAS curve provides economists with a graphical depiction of how the output of an economy changes in the long-run. The curve is vertically fixed at the full employment output level, to indicate that an economy cannot sustainably produce above capacity unless there is a change in the quality and/or quality of the economy's stock of factors of production. Being able to understand the distinction between a movement and shift in this curve is important because AD/AS diagrams represent the core bedrock of many macroeconomic essay questions.
The nature and shape of the aggregate supply curve will change rather drastically if looking at this from a Keynesian school of thought. The video shows you the evaluative benefits your essay may benefit from by being able to draw upon a Keynesian AS curve.
Here Jacob guides you around the topic of LRAS curves:
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