IB Economics HL 3.2.5 Long-run shifts in aggregate supply
IB Economics HL 3.2.5 Long-run shifts in aggregate supply
Students practise explaining how improvements in education, infrastructure, technology, or labour participation shift LRAS right — increasing potential output.
How this is tested
- draw AD/AS to show hydropower investment shifting LRAS right and lifting potential GDP
- explain how female participation and education raise human capital and shift LRAS right
- explain how weaker infrastructure lowers productive capacity and shifts LRAS leftward