Aggregate Supply
Italy's aggregate supply shifts: GDP per hour worked has remained steady in Italy for the last ten years, which means that there has not been much change in supply potential resulting in not many shifts on the AS or LRAS curves. (Italy is the red line). Birth rate has been on a long decline since 2008, which means a shift to the left in the supply curves because a decrease in population means a decrease in factors for production in a country. Education for children out of school has been on a steady increase, causing a shift to the right, because a more educated population increases potential production. School Enrollment (tertiary) has been fluctuating but most recently is at an incline, causing a shift to the right. Italy has has been steadily losing agricultural land which probably means that they are using the land for other things, which may increase the factors of production and cause a shift to the right, however for the future, the potential production factor has gone down...