The long-run aggregate supply increases as:
A) new production technology is introduced.
B) the quality of labor declines.
C) the average price level increases.
D) natural resources become depleted.
E) the minimum wage rate increases.

Question

Quizplus · Accepted Answer

The introduction of new production technology increases productivity, leading to an increase in potential output and an outward shift in the long-run aggregate supply curve.

The Long-Run Aggregate Supply Increases As