The movement of the vertical _____ curve to the _____ reflects the increase in potential output on account of the development of new technologies and increase in the quantity and quality of resources.
A)long-run aggregate supply;right
B)short-run aggregate supply;right
C)short-run aggregate demand;left
D)long-run aggregate demand curve;left
E)long-run aggregate supply;left

Question

Quizplus · Accepted Answer

The movement of the vertical long-run aggregate supply curve to the right reflects the increase in potential output due to the development of new technologies and the increase in the quantity and quality of resources. This is because in the long run, all inputs are variable, and as these inputs increase, potential output also increases.

The Movement of the Vertical _____ Curve to the _____

The Movement of the Vertical _ Curve to the _