Something that would cause the long-run aggregate supply curve to shift to the right would be:
A) technological advance.
B) discovery of a new oil reserve.
C) increase in the growth rate of the labor force.
D) All of these would shift the long-run aggregate supply curve to the right.

Question

Quizplus · Accepted Answer

All of the given choices would cause the long-run aggregate supply curve to shift to the right. Technological advance would increase productivity, discovering a new oil reserve would reduce the cost of production, and an increase in the growth rate of the labor force would lead to an increase in the number of workers and therefore output. All of these factors would increase the economy's potential output, shifting the LRAS curve to the right.

Something That Would Cause the Long-Run Aggregate Supply Curve to Shift