Over time in a growing economy, the long- run aggregate supply curve will
A)shift rightward.
B)become increasingly steep.
C)become horizontal at the long- run potential price level.
D)shift leftward.

Question

Quizplus · Accepted Answer

In a growing economy, the long-run aggregate supply curve shifts rightward due to factors like technological advancements, increases in capital stock, and improvements in labor productivity, which enhance the economy's capacity to produce goods and services.

Over Time in a Growing Economy, the Long- Run Aggregate