An increase in the amount of resources would shift the long-run aggregate supply curve:
A)rightward.
B)leftward.
C)no shift.
D)none of the above.

Question

Quizplus · Accepted Answer

An increase in the amount of resources would lead to an increase in potential output, which shifts the long-run aggregate supply curve rightward. This is because with more resources available, firms are able to produce more output at any given price level, leading to an increase in the quantity of goods and services supplied in the economy.

An Increase in the Amount of Resources Would Shift the Long-Run