2.3 - AS

Question 1

What is the short run as curve?

Answer 1

This is based on the cost of production of firms. For example cost of raw materials, wages tax rates etc..

Question 2

What is the LRAS curve ?

Answer 2

This is a change in the quality of quantity of the factors of production.

Shifts in the LRAS curve are caused by technological advancement, migration, education levels, changes in minimum wage etc.