Long run aggregate supply • Long run aggregate supply(LRAS): the ability of how an economy’s supply could meet demand in the long run; this is done by looking at an economy’s factors of production and technology. • The Classical view is that Long Run Aggregate Supply (LRAS). This has important implications. The classical view suggests that real GDP is determined by supply-side factors – the level of investment, the level of capital and the productivity of labour • The Keynesian view of long-run aggregate supply is different. They argue that the economy can be below full capacity in the long term.