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

Question

Quizplus · Accepted Answer

A technological advance increases potential GDP, increases aggregate supply, and shifts the aggregate supply curve rightward. This is because technology allows for more efficient and productive ways of producing goods and services, leading to an increase in potential output and overall supply in the economy. As a result, there is a rightward shift in the aggregate supply curve.

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

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