If technological change occurs in the economy,
A)the long-run aggregate supply curve will shift to the right.
B)the long-run aggregate supply curve will shift to the left.
C)we will move up along the long-run aggregate supply curve.
D)we will move down along the long-run aggregate supply curve.
E)the long-run aggregate supply curve will become steeper.

Question

Quizplus · Accepted Answer

Technological change is a factor that increases productivity and efficiency in the economy. Therefore, it leads to an increase in the potential output of the economy, which shifts the long-run aggregate supply curve to the right.

If Technological Change Occurs in the Economy