c) Influences on LRAS

• state the six factors that influence LRAS

• technological advances

• relative productivity

• education and skills

• government regulations

• demographic changes and migration

• competition policy

• describe how technological advances increase long-run aggregate supply

• improves

  • quality of land

  • quality/quantity of capital

• describe how higher relative productivity increases long-run aggregate supply

• improves

  • quantity/quality of all FOP

• describe how education and skills increases long-run aggregate supply

• improves

  • quality of labour

• describe government regulations can increase long-run aggregate supply

• removal of regulations

• improves

  • quality/quantity of all FOP

• describe how demographic changes and migration can increase long-run aggregate supply

• improves

  • quantity of labour

• describe how competition policy can increase long-run aggregate supply

• regulations on monopolies

• more firms supplying goods and services