The long-run aggregate supply curve will shift to the right if the economy
A)experiences technological change.
B)has a decrease in population.
C)experiences high levels of inflation.
D)net exports decrease.

Question

Quizplus · Accepted Answer

Technological change increases the economy's potential output by increasing productivity and efficiency, which causes the long-run aggregate supply curve to shift to the right. Decrease in population, high levels of inflation, and decrease in net exports are more likely to affect short-run aggregate supply and demand than long-run supply.

The Long-Run Aggregate Supply Curve Will Shift to the Right