If the full- employment quantity of labour increases, then the
A)SAS curve shifts rightward and the LAS curve does not shift.
B)SAS curve shifts rightward and the LAS curve does shifts leftward.
C)LAS curve shifts rightward and the SAS curve does not shift.
D)SAS curve shifts rightward and the LAS curve shifts rightward.

Question

Quizplus · Accepted Answer

An increase in the full-employment quantity of labor will shift the SAS curve to the right, as more labor is available to produce goods and services. The LAS curve will also shift to the right, as more labor is available to supply.

If the Full- Employment Quantity of Labour Increases, Then the