Which of the following is most likely to shift the potential output of an economy to the right?
A)A decline in the length of the average workweek
B)An increase in the supply of educated and skilled workers
C)A drought
D)An increase in aggregate demand
E)An increase in the minimum wage received by workers

Question

Quizplus · Accepted Answer

An increase in the supply of educated and skilled workers is likely to shift the potential output of an economy to the right as it increases the economy's capacity to produce goods and services. This can occur through improved technology, education and training programs or attracting skilled workers from other countries.

Which of the Following Is Most Likely to Shift the Potential