As the capital stock grows and technology improves, we would expect the long-run aggregate supply curve to
A)shift right.
B)shift left.
C)remain the same.
D)first shift right, then shift left.

Question

Quizplus · Accepted Answer

As capital stock grows and technology improves, the economy becomes more productive, resulting in increased potential output. This means that at any given price level, producers are able to supply more goods and services in the long run. Therefore, the long-run aggregate supply curve would shift to the right.

As the Capital Stock Grows and Technology Improves, We Would