Which of the following would cause the long-run aggregate supply curve to shift rightward?
A) a rise in energy prices
B) a drop in the actual price level
C) if workers opt for more leisure time and less time on the job
D) if a technological breakthrough, with widespread practical applications, occurs in the microcomputer industry

Question

Which of the following would cause the long-run aggregate supply curve to shift rightward?  
A) a rise in energy prices 
B) a drop in the actual price level 
C) if workers opt for more leisure time and less time on the job 
D) if a technological breakthrough, with widespread practical applications, occurs in the microcomputer industry

Quizplus · Accepted Answer

A technological breakthrough in a key industry would lead to increases in productivity, decreasing costs and increasing long-run aggregate supply. The other options would lead to a decrease in long-run aggregate supply.

Which of the Following Would Cause the Long-Run Aggregate Supply