What Factors Cause a Shift in the Long-Run Aggregate Supply

question 10

Essay

What factors cause a shift in the long-run aggregate supply curve? Might any of these cause the short-run aggregate supply curve to shift,also?

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Definitions:

Average Variable Cost

The cost per unit of a good or service that varies with the level of output, excluding fixed costs.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or output.

Total Cost

The complete cost of producing a certain amount of output, including both fixed and variable costs.

Quantity

The amount or number of a material or immaterial thing not usually estimated by spatial measurement.