-In the above figure, the short- run aggregate supply curve is SAS₁. If the level of technology in the economy increases, there is A) a shift to SAS₂. B) an upward movement along SAS₁. C) a shift to SAS₀. D) a downward movement along SAS₁.

Question

Quizplus · Accepted Answer

An increase in the level of technology typically increases productivity, which shifts the short-run aggregate supply curve to the right, from SAS₁ to SAS₂.

-In the Above Figure, the Short- Run Aggregate Supply Curve