-In the above figure,B is the current long-run aggregate supply curve and E is the current short-run aggregate supply curve.If there is an increase in the full-employment quantity of labor,then the long-run aggregate supply curve and the short-run aggregate supply curve
A) remain B and E.
B) shift to A and D, respectively.
C) shift to C and F, respectively.
D) shift to A and F, respectively.

Question

-In the above figure,B is the current long-run aggregate supply curve and E is the current short-run aggregate supply curve.If there is an increase in the full-employment quantity of labor,then the long-run aggregate supply curve and the short-run aggregate supply curve
A) remain B and E. 
B) shift to A and D, respectively. 
C) shift to C and F, respectively. 
D) shift to A and F, respectively.

Quizplus · Accepted Answer

An increase in the full-employment quantity of labor would shift both the long-run and short-run aggregate supply curves to the right, indicating an increase in potential output.

-In the Above Figure,B Is the Current Long-Run Aggregate Supply