Netherlands Changes in SRAS and LRAS


 Netherlands Changes in SRAS and LRAS

Birth Rate:

The birth rate in the netherlands is currently decreasing a little bit every year. From 2016 to 2020, the birth rate was 1.66%, 1.62%, 1.59%, 1.57%, and 1.55%, respectfully. This is showing a slight decrease every year, meaning that the future workforce is getting smaller and smaller. This would shift the LRAS curve to the left because a decrease in the birth rate, will cause a decreased amount of labor, meaning there will be less people to do work. This would affect the LRAS and not the SRAS because the amount of people in the labor force is a more long term effect, than short run, especially since it won't naturally change super quickly. 


Education: 




In the Netherlands 79.38% of people in the labor force have advanced education as of 2021. In 2020 it was 80.49%. From 2016 to 2019 the percentage stayed around 80%. The drop in the amount of people with advanced education would move the LRAS curve to the left. It shifts the LRAS because getting education is time intensive, so to change the amount of people with advanced education would take time. The shift in the curve is due to there being less people in the workforce that can do more specialized jobs. If employers have to hire people without advanced education they will have to pay for them to continue their education or to get training in the area, which will ultimately increase the cost to supply goods. 



Sources: 

https://data.worldbank.org/indicator/SP.DYN.TFRT.IN?end=2020&locations=NL&name_desc=false&start=1960&view=chart 

https://www.macrotrends.net/countries/NLD/netherlands/birth-rate

https://data.worldbank.org/indicator/SL.TLF.ADVN.ZS?end=2021&locations=NL&start=2014







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