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AS (Determinants, Shifts in AS change in quantity or quality of one of…
AS
Determinants
Cost of production
Will not change YFE
Increase/ Decrease in cost of labour
Increase/ Decrease price of raw materials
Cost of production rises/ falls
Increase/ Decrease in taxation
Mainly corporation tax
production cost rises/ falls
SRAS
Productivity
output per worker per unit of time
Education and training
Higher skills of workforce, higher their productivity
increase in YFE
Motivation
Increase motivation, increase productivity
Increase in YFE
Taxation (income tax)
higher the income tax, lower the productivity
Decrease in YFE
Working practices
higher efficiency of WP, higher productivity
Increase in YFE
Machinery
higher efficiency of machinery. higher productivity
increases level of output in same amount of time
Increase in YFE
SRAS
New Resources
Increase resources
land, labour, capitol, enterprise
Increase in YFE
vice versa
LRAS
New Technology
Greater amount of output produced from same resources
Increase in YFE
vice versa
LRAS
Shifts in AS
change in quantity or quality of one of four factors of production
SRAS
New technology
increase in quality of capital
increase in YFE
Loss of Resources
Decrease in one of four factors of production
Decrease in YFE
Increase in cost of production
No change in four factors of production
NO change in YFE
decrease in cost of production
No change in four factors of production
NO change in YFE
LRAS
Change in the quantity or quality of the factors of production
Land, Labour, Capital, Enterprise