A technological advance ________ aggregate supply,shifting the aggregate supply curve ________ and potentially bringing the ________ phase of the business cycle.
A)decreases;rightward;expansion
B)decreases;leftward recession
C)increases;rightward;expansion
D)increases;rightward;recession
E)increases;leftward;expansion

Question

Quizplus · Accepted Answer

A technological advance increases productivity, thus increasing aggregate supply and shifting the aggregate supply curve rightward. This increase in supply can lead to an expansion phase of the business cycle as firms are able to produce more goods and services at lower costs.

A Technological Advance ________ Aggregate Supply,shifting the Aggregate Supply Curve