A rightward shift in potential real GDP is not likely to result from which of the following?
A) a discovery of new oil reserves
B) workers' acquisition of new skills
C) retirement of a large and aging segment of the workforce
D) an improvement in technology

Question

Quizplus · Accepted Answer

Retirement of a large and aging segment of the workforce is unlikely to cause a rightward shift in potential real GDP as it leads to a decrease in the available labor force and a potential decrease in productivity. A rightward shift in potential real GDP is typically caused by factors that increase the availability of labor or the productivity of existing labor, such as A) a discovery of new oil reserves, B) workers' acquisition of new skills, or D) an improvement in technology.

A Rightward Shift in Potential Real GDP Is Not Likely