Changes That Cause An Increase In Aggregate Supply
- Discoveries of new raw materials
- Increased competition
- A reduction in international trade barriers
- Few regulatory impediments to business
- An increase in labor supplied
- Increased training and education
- A decrease in marginal tax rates
- A reduction in input prices
Changes That Cause A Decrease In Aggregate Supply
- Depletion of raw materials
- Decreased Competition
- An increase in international trade barriers
- More regulatory impediments to business
- A decrease in labor supplied
- Decreased training and education
- An increase in marginal tax rates
- An increase in input prices
Aggregate Supply Shock - Any shock that causes the aggregate supply curve to shift inward or outward