Which of the following would cause the long-run aggregate supply curve to shift?
A) an increase in the price level
B) a decrease in the expected price level
C) an increase in labor productivity
D) an autonomous increase in consumption spending

Question

Quizplus · Accepted Answer

An increase in labor productivity would lead to an increase in the potential output of an economy, thereby shifting the long-run aggregate supply curve to the right. None of the other options are likely to shift the long-run aggregate supply curve.

Which of the Following Would Cause the Long-Run Aggregate Supply