Aggregate Supply

Short Run Aggregate Supply 

The total planned output when prices can change but productivity and availability of all factors of production are constant. 

Shifts in AS

• Change in raw material costs
• Government intervention eg taxes/subsidies
• Change in employment costs
• Exchange rates
• Shocks

Long Run Aggregate Supply - A measure of the countries potential output when inputs, prices and wage rates are variable. 

Shifts in LRAS are caused by; 

• Investment 
• Increased workforce
• More skilled workforce