The closer GDP comes to the natural rate of output, the more time a free market economy has to respond to price changes.
A curve illustrating the link between price level and real GDP that would be produced if all prices, including nominal wages, were fully flexible; prices can move along the LRAS, but output cannot because that output reflects the full employment output.
Only capital, labor, and technology have an effect on the aggregate supply curve over the long term. Since it is vertical in the long run, the curve could move to the right as a result of increased resources, labor availability, and advancements in technology.
The production factors ultimately decide how the aggregate supply curve shifts. The curve shifts to the right when the production factors rise, and to the left when the production factors fall.
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