Evaluate Three Policies That Might Be Used to Increase Lras
Evaluate three policies that might be used to increase LRAS
In order for an increase to occur in LRAS a shift of the curve to the right must arise. For this shift of the LRAS to the right to take place an improvement in the quality of the factors of production or increase in the quantity of the factors of production. I will be evaluating three policies that might be used to increase LRAS through the increase in the quantity of the factors of production. The first policy that I will be evaluating will be discovery of new resources (land); the second policy that I will be evaluating will be increase in birth rate (labour + entrepreneurship) and the third policy that I will be evaluating will be investment [capital (The amount of capital that a firm, usually in financial services, needs to ensure capability of meeting financial obligations)].
The discoveries of new resources would lead to an increase in LRAS curve, which means that the curve needs to shift to the right, because more development would be able to occur. For that development to occur the number of potential workers would need to increase in order for greater output to be produced. New resources would lead to the development of new production techniques, and will reinforce the methods of production. This will all increase the economy’s potential output, but great amounts of spending in research and development would need to arise.
The increase in birth rate would lead to an increase in LRAS curve, which means that the curve needs to shift to the right, because more labour would be out in markets, so that economy could be actively run. This would increase the productivity of goods, giving a wider variety of products to the different markets. A greater population to contribute to labour will have a great impact on development, because the more brains there are to think the more ideas can be put to action, giving consumers more choice of goods and services. The more labour there is, the more goods and
In order for an increase to occur in LRAS a shift of the curve to the right must arise. For this shift of the LRAS to the right to take place an improvement in the quality of the factors of production or increase in the quantity of the factors of production. I will be evaluating three policies that might be used to increase LRAS through the increase in the quantity of the factors of production. The first policy that I will be evaluating will be discovery of new resources (land); the second policy that I will be evaluating will be increase in birth rate (labour + entrepreneurship) and the third policy that I will be evaluating will be investment [capital (The amount of capital that a firm, usually in financial services, needs to ensure capability of meeting financial obligations)].
The discoveries of new resources would lead to an increase in LRAS curve, which means that the curve needs to shift to the right, because more development would be able to occur. For that development to occur the number of potential workers would need to increase in order for greater output to be produced. New resources would lead to the development of new production techniques, and will reinforce the methods of production. This will all increase the economy’s potential output, but great amounts of spending in research and development would need to arise.
The increase in birth rate would lead to an increase in LRAS curve, which means that the curve needs to shift to the right, because more labour would be out in markets, so that economy could be actively run. This would increase the productivity of goods, giving a wider variety of products to the different markets. A greater population to contribute to labour will have a great impact on development, because the more brains there are to think the more ideas can be put to action, giving consumers more choice of goods and services. The more labour there is, the more goods and