Which of the following would shift the long-run aggregate supply curve to the right?
A) a decline in the size of the labour force
B) a reduction in the quality of the labour force
C) a reduction in the cost of using computers
D) an increase in aggregate demand

Question

Which of the following would shift the long-run aggregate supply curve to the right?  
A) a decline in the size of the labour force 
B) a reduction in the quality of the labour force 
C) a reduction in the cost of using computers 
D) an increase in aggregate demand

Quizplus · Accepted Answer

A reduction in the cost of using computers would increase productivity and efficiency, which would shift the long-run aggregate supply curve to the right. A decline in the size of the labor force or a reduction in the quality of the labor force would lead to a decrease in productivity and efficiency, which would shift the long-run aggregate supply curve to the left. An increase in aggregate demand would shift the short-run aggregate supply curve to the right, but would have no effect on the long-run aggregate supply curve.

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