What LRAS represents
What LRAS represents
Long-run aggregate supply (LRAS) is the total output an economy can produce when its factors of production are fully and efficiently employed. It represents productive capacity, also called potential or full-employment output.
Step-by-step lessons covering AQA A Level Economics 2.2.6 Determinants of long-run aggregate supply for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.