Any permanent change in the quantity of any factor of production available-capital,technology,land,or labour-can cause a shift in both the long-run and short-run aggregate supply curves.

Question

Quizplus · Accepted Answer

Any permanent change in the quantity of factors of production can cause a shift in both the short-run and long-run aggregate supply curves. This is because changes in the factors of production affect the availability and cost of producing goods and services, which can impact supply in the short and long term.

Any Permanent Change in the Quantity of Any Factor of Production