The long run aggregate supply curve
changes in natural resources: If natural resources become more easily accessible to a country, the long run aggregate supply curve would shift to the _______
right
changes in technological knowledge: if a country gains more technological knowledge the aggregate supply curve would shift to the _______
right
What are the four reasons the long run aggregate supply curve might shift?
changes in labor, capital, natural resources, technological knowledge
changes in capital: A decrease in a country's capital stock causes a ________ in the country's productivity and thereby a ________ in the quantity of goods and services supplied. shifting the long run aggregate supply to the _______
decrease, decrease, left
changes in labor: If Congress were to pass a law that encourage unemployed workers to search harder for jobs, then the natural rate of unemployment would _______ which would cause a ________ in the quantity of goods and services supplied, shifting the long run aggreagte supply to the ______
decrease, increase, right
changes in labor: If Congress were to raise the minimum wage substantially, then the natural rate of unemployment would _____ and which would cause a _______ in the quantity of goods and services supplied, shifting long run aggregate supply to the ____
increase, decrease, left
changes in capital: An increase in a country's capital stock causes an ________ in the country's productivity and thereby an ________ in the quantity of goods and services supplied. shifting the long run aggregate supply to the _______
increase, increase, right
changes in natural resources: If natural resources become less accessible to a country, the long run aggregate supply curve would shift to the _____
left
changes in labor: A country has an influx of emigrants, therefore there will be ______ workers, which will _____ the quantity of goods and services supplied and would shift the long-run aggregate supply to the _______
less, decrease, left
changes in labor: A country has an influx of immigrants, therefore there will be ______ workers, which will _____ the quantity of goods and services supplied and would shift the long-run aggregate supply to the _______
more, increase, right
the production of goods and services that an economy achieves in the long run when unemployment is at its normal rate
natural level of output
The long run aggregate supply curve is vertical because Real GDP is only affected by _______ ______
real variables