Which of the following would cause the long-run aggregate supply curve to shift?
A)An increase in the price level
B)A decrease in the expected price level
C)An increase in labor productivity
D)An autonomous increase in consumption spending

Question

Quizplus · Accepted Answer

An increase in labor productivity would shift the long-run aggregate supply curve to the right. This is because an increase in productivity would allow firms to produce more output with the same amount of inputs, which would increase potential output in the long run. The other options would not shift the long-run aggregate supply curve.

Which of the Following Would Cause the Long-Run Aggregate Supply