-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 SAS₀. C)an upward movement along SAS₁. D)a shift to SAS₂.

Question

Quizplus · Accepted Answer

An advancement in technology typically increases productivity, which shifts the short-run aggregate supply curve to the right, indicating an increase in supply at every price level.

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