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Main determinants of aggregate supply

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It has been asserted that the main determinants of aggregate supply can be grouped into four: resource quantity (e.g., labor, capital, land, and entrepreneurship), resource quality or productivity, and resource price. We can change any of these four categories and influence aggregate supply. If the government was to devise new economic growth policies, and if there are limitations to affect all determinants of aggregate supply simultaneously, which group should be targeted first, second, third and fourth? Why? How do we develop the ranking of these determinants?

Reference no: EM131287649

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