The long-run aggregate supply curve will shift to the right if
A)the economy experiences technological change.
B)there is a decrease in population.
C)the economy experiences high levels of inflation.
D)net exports decrease.

Question

Quizplus · Accepted Answer

Technological change increases productivity and efficiency, which can lead to an increase in the supply of goods and services in the long run, shifting the long-run aggregate supply curve to the right. The other choices would not cause a shift to the right in the long-run aggregate supply curve.

The Long-Run Aggregate Supply Curve Will Shift to the Right