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AGGREGATE SUPPLY SHIFTS: Changes in the aggregate supply determinants can shift either the short-run aggregate supply curve and the long-run aggregate supply curve. The mechanism is comparable to that for market supply determinants and market supply. We have two options -- an increase in aggregate supply and a decrease in aggregate supply. An increase in resource quantity or quality or a decrease in resource prices shift the aggregate supply curves to right. A decrease in resource quantity or quality or an increase in resource prices shift the aggregate supply curves to left.

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MOBILITY: The movement of factors of production from one productive activity to another. In particular, mobility is the ease with which resources can change production activities. Some factors are highly mobile and thus are easily switched. Other factors are highly immobile and not easily switched. Mobility generally takes one of two forms--geographic mobility and occupational mobility. Geographical mobility is the movement of factors from a productive activity in one location to a production activity in another location. Occupational mobility is the movement of factors from one type of productive activity to another type of productive activity.

     See also | labor | labor market | resources | factors of production | factor markets | geographic mobility | occupational mobility | factor supply |


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ECONOMIC GOALS

Five conditions of the mixed economy, including full employment, stability, economic growth, efficiency, and equity, that are generally desired by society and pursued by governments through economic policies. The five goals are typically divided into the three that are most important for macroeconomics (the macroeconomic goals of full employment, stability and economic growth) and the two that are most important for microeconomics (the microeconomic goals of efficiency and equity).

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