Both short-run and long-run aggregate supply curves can shift to the right if entrepreneurial activities lower costs of production and expand what can be produced.

Question

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If entrepreneurial activities lead to lower costs of production and the expansion of production possibilities, it can increase the availability of resources and productivity, which can shift both short-run and long-run aggregate supply curves to the right.

Both Short-Run and Long-Run Aggregate Supply Curves Can Shift to the Right