An increase in the long-run aggregate supply curve is due to an increase in
A) the price level.
B) the natural rate of unemployment.
C) real per capita GDP.
D) the rate of economic growth.
E) the rate of inflation.

Question

Quizplus · Accepted Answer

An increase in the long-run aggregate supply curve is due to an increase in the rate of economic growth, which means that there are more resources available to produce goods and services in the economy. This leads to an increase in potential output and an outward shift in the long-run aggregate supply curve. None of the other choices directly affect the long-run aggregate supply curve.

An Increase in the Long-Run Aggregate Supply Curve Is Due