What causes the long-run aggregate supply curve to shift?
A)changes in the amount of labor
B)changes in the amount of capital
C)changes in technology
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve shifts due to changes in the amount of labor, changes in the amount of capital, and changes in technology. All three factors contribute to the potential output of an economy and can cause the long-run aggregate supply curve to shift. For example, an increase in technology can lead to an increase in productivity and potential output, leading to a rightward shift of the long-run aggregate supply curve.

What Causes the Long-Run Aggregate Supply Curve to Shift