The Determinants of Long-Run Aggregate Supply (LRAS) - A-Level Macroeconomics / Economics

An extension of aggregate supply theory and a detailed look at LRAS, the banking system and the labour market.

Main aim: Students will expand their theory of AS and look at how focus on detailed reason how LRAS can be impacted in an economy. Students also assess both the Classical and Keynesian view.

This lesson covers the following areas:

• Re-cap on aggregate supply
• Keynesian vs Classical
• Aggregate Supply & the Institutional Structure of the Economy
• The Labour Market & LRAS
• Keynesian Economists & Wage ‘Stickiness’

The lesson includes numerous written tasks with two essay-based exam questions at the end. This lesson could easily last 2+ hours.