A technological advance ________ potential GDP,________ aggregate supply,and shifts the aggregate supply curve ________.
A)increases;increases;leftward
B)increases;increases;rightward
C)decreases;decreases;leftward
D)increases;decreases;leftward
E)decreases;increases;rightward

Question

Quizplus · Accepted Answer

A technological advance increases potential GDP by increasing the amount of output that can be produced with the same amount of resources. This in turn increases aggregate supply, shifting the aggregate supply curve to the right.

A Technological Advance ________ Potential GDP,________ Aggregate Supply,and Shifts the Aggregate

A Technological Advance Potential GDP, Aggregate Supply,and Shifts the Aggregate