1. Growth and Long Run Aggregate Supply Objectives: 1. Understand the concept of long-run aggregate supply. 2. Describe the effect of economic growth on the long-run aggregate supply curve. 3. Understand the effect of shifts in Aggregate Demand.

2. Aggregate Supply  Aggregate supply –Total planned production for the economy  Long Run Aggregate Supply –Fixed, determined by technology and resources –Unattested by changes In the Price Level –Economic Growth = shift of LRAS

3. Aggregate Supply II

4. Long Run Macro Equilibrium