Which of the following is most likely to increase long-run aggregate supply in an economy?
A) a decrease in the size of the labor force
B) a deterioration in the quality of the labor force
C) a reduction in the cost of using computers
D) an increase in the price level
E) an increase in aggregate demand

Question

Quizplus · Accepted Answer

A reduction in the cost of using computers would likely increase productivity and technological advancements, leading to an increase in long-run aggregate supply. A decrease in the size or quality of the labor force would reduce the supply of labor and therefore decrease long-run aggregate supply. An increase in the price level would not directly impact long-run aggregate supply, but would rather lead to a movement along the existing supply curve. An increase in aggregate demand would lead to an increase in short-run aggregate supply but would not directly impact long-run aggregate supply.

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