Which of the following is NOT an event that causes BOTH the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve to shift?
A) A change in an economy's endowments of the factors of production
B) Technological changes
C) A change in an economy's labor supply
D) A temporary change in the price of a key input

Question

Quizplus · Accepted Answer

A temporary change in the price of a key input only causes a shift in the SRAS curve, as it affects the production costs in the short run. It does not affect the long-run productive capacity of an economy, so it does not shift the LRAS curve. A, B, and C all affect a country's productive capacity in the long run and therefore shift both SRAS and LRAS curves.

Which of the Following Is NOT an Event That Causes