Which of the following would cause the long-run aggregate supply curve to shift to the right?
A)an increase in wages
B)an increase in demand
C)an increase in productivity
D)an increase in taxes on profits

Question

Quizplus · Accepted Answer

An increase in productivity would lead to a decrease in production costs and an increase in potential output in the long run, causing the long-run aggregate supply curve to shift to the right. The other options would cause the long-run aggregate supply curve to shift to the left.

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