An increase in the money wage rate shifts the short- run aggregate supply curve ; an increase in technology shifts the long- run aggregate supply curve .
A) leftward; leftward
B) rightward; leftward
C) leftward; rightward
D) rightward; rightward

Question

Quizplus · Accepted Answer

An increase in the money wage rate increases production costs, shifting the short-run aggregate supply curve leftward. An increase in technology improves productivity, shifting the long-run aggregate supply curve rightward.

An Increase in the Money Wage Rate Shifts the Short-