Widespread adoption of mobile phones over the last 20 years has caused the _______ aggregate supply curve to _______.
A) long-run; shift to the right
B) long-run; shift to the left
C) short-run; shift to the left
D) long-run; remain fixed

Question

Quizplus · Accepted Answer

Widespread adoption of mobile phones has increased productivity and efficiency in many industries, leading to an increase in the long-run aggregate supply. This is because technological advancements, such as mobile phones, can help increase the potential output of an economy by improving communication and the flow of information, as well as reducing transaction costs. Therefore, the long-run aggregate supply curve shifts to the right.

Widespread Adoption of Mobile Phones Over the Last 20 Years