The introduction of the power loom during the Industrial Revolution caused the _______ aggregate supply curve to shift to the _______.
A) long-run; left
B) long-run; right
C) short-run; left
D) None of these shifts occurred when the power loom was introduced.

Question

Quizplus · Accepted Answer

The power loom allowed for increased productivity and efficiency in textile production, which would have caused a shift in the long-run aggregate supply curve to the right. This is because the increase in productivity leads to a decrease in the cost of production, allowing firms to produce more output at the same price level.

The Introduction of the Power Loom During the Industrial Revolution