Which one, if any, of the following events shift the short- run aggregate supply curve but not the long- run aggregate supply curve?
A)a catastrophic event such as a tornado or hurricane
B)a change in the quantity of capital
C)an advance in technology
D)a change in factor prices
E)an increase in the full- employment quantity of labour

Question

Quizplus · Accepted Answer

A change in factor prices, such as wages or the cost of raw materials, affects the short-run aggregate supply curve by altering production costs, but it does not affect the long-run aggregate supply curve, which is determined by factors like technology and resources.

Which One, If Any, of the Following Events Shift the Short-