A technological advance shifts the
A)SAS and LAS curves rightward.
B)LAS curve rightward but leaves the SAS curve unchanged.
C)SAS curve rightward but leaves the LAS curve unchanged.
D)SAS and AD curves rightward.
E)SAS and LAS curves leftward.

Question

Quizplus · Accepted Answer

A technological advance increases the productive capacity of an economy, shifting both the Short-Run Aggregate Supply (SAS) and Long-Run Aggregate Supply (LAS) curves to the right.

A Technological Advance Shifts the