OECD Country Blog - Changes in AS/LRAS

Canada Real GDP per hour worked 2000-2020 (2015 USD $)

https://data.oecd.org/lprdty/gdp-per-hour-worked.htm 
I would argue that the trends in Canada's real GDP per hour worked suggest a shift to the right in its long-run aggregate supply curve. As shown in the graph, Canada's Real GDP per hour worked has been steadily increasing since 2000. This means that its productive potential has increased - causing a shift to the right in the LRAS. In other words, the productive capacity of Canada's economy has been increasing over time. 

 Canada Real GDP per person employed 2000-2020 (constant 2017 PPP USD $) 



OECD (2021), GDP per hour worked (indicator). DOI: 10.1787/1439e590-en (Accessed on 26 April 2021) https://data.oecd.org/lprdty/gdp-per-hour-worked.html
Similar to the previous graph, this data suggests that Canada's long-run aggregate supply has increased since 2000.  This graph shows that Canada has experienced an improvement in the quality of the factors of production, specifically an increase in the productivity (output per unit of input) of workers.  The only time period where the GDP per person employed in Canada was not increasing was from 2007 - 2009. This decrease in  GDP per person employed can be attributed to the financial crisis of 2008. 
    The reason the GDP per person employed and GDP per hour worked are slightly different is that someone can work fewer hours while still producing the same output, which would result in an increase in GDP per hour worked but not GDP per person employed. 
    The increase in both GDP per person employed and GDP per hour worked can be attributed to technological advancements in Canada. Cities like Toronto and Montreal are becoming large hubs for technology. Amazon, IBM, Google, Microsoft, and other tech giants have offices in Toronto, which creates lots of high-paying jobs in that area - thus increasing GDP and per person and per hour worked.


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