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