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aggregate supply - Coggle Diagram
aggregate supply
long-run
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technological advancements can make an economy more productive (also increasing labour productivity) and also improves capital, more goods and services can be produced in the same amount of time.
entrepreneurial culture- this can increase aggregate supply as more people are prepared to setup their businesses. can be helped by the institutional structure of the economy and incentives e.g.- tax lowered in US to encourage more businesses therefore they will benefit more from their business.
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changes in the government policy which can encourage the population to work will decrease unemployment and will shift the curve , reduced income taxes to encourage labour.
long-run aggregate supply: population, capital stock, technological progress.