Which of the following is most likely to cause the long-run aggregate supply curve to shift rightward?
A) a rise in energy prices
B) a drop in the actual price level
C) an increase in the demand for leisure hours
D) an increase in the level of investment spending that is less than the depreciation of the capital stock
E) a technological breakthrough with widespread practical applications

Question

Quizplus · Accepted Answer

A technological breakthrough with widespread practical applications would increase productivity and efficiency, leading to lower costs of production and a rightward shift in the long-run aggregate supply curve. Choices A, B, and C would shift the curve to the left, while choice D would have no effect on the long-run aggregate supply curve.

Which of the Following Is Most Likely to Cause the Long-Run