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

Question

Quizplus · Accepted Answer

An advancement in 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 Is