If technological change occurs in the economy
A)the long-run aggregate supply curve will shift to the right.
B)the long-run aggregate supply curve will shift to the left.
C)we will move up along the long-run aggregate supply curve.
D)we will move down along the long-run aggregate supply curve.

Question

Quizplus · Accepted Answer

Technological change leads to an increase in productivity and efficiency in production processes, which results in an increase in potential output. This shift in potential output is reflected by a rightward shift in the long-run aggregate supply (LRAS) curve, which represents the economy's sustainable level of output in the long run. Therefore, Choice A is the correct answer.

If Technological Change Occurs in the Economy