Which of the following results in a permanent shift of the vertical aggregate supply curve?
A) Increased consumer optimism
B) Greater business confidence
C) A decline in inflation
D) Technological advances
E) Changing expectations

Question

Quizplus · Accepted Answer

Technological advances can lead to a permanent shift in the vertical aggregate supply curve as they increase productivity and efficiency in production, leading to lower costs and higher output levels in the long run. The other options (increased consumer optimism, greater business confidence, a decline in inflation, and changing expectations) can lead to short-term shifts in the aggregate supply curve but not permanent ones.

Which of the Following Results in a Permanent Shift of the Vertical