Growth and Long Run Aggregate Supply Objectives: 1. Understand the concept of long-run aggregate supply. 2. Describe the effect of economic growth on the.

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Growth and Long Run Aggregate Supply Objectives: 1. Understand the concept of long-run aggregate supply. 2. Describe the effect of economic growth on the long-run aggregate supply curve. 3. Understand the effect of shifts in Aggregate Demand.

Aggregate Supply  Aggregate supply –Total planned production for the economy  Long Run Aggregate Supply –Fixed, determined by technology and resources –Unattested by changes In the Price Level –Economic Growth = shift of LRAS

Aggregate Supply II

Long Run Macro Equilibrium