Which of the following will NOT lead to a rightward shift of the long-run aggregate supply curve?
A) Increase in labor productivity
B) Increase in aggregate demand
C) Increase in capital
D) Increase in labor

Question

Quizplus · Accepted Answer

An increase in aggregate demand would cause a movement along the existing long-run aggregate supply curve, but it would not shift the curve itself. Only changes in factors affecting potential output, such as labor productivity, capital, and labor, can shift the long-run aggregate supply curve.

Which of the Following Will NOT Lead to a Rightward