A beneficial supply shock would shift the
A)long-run and short-run aggregate supply curves inward
B)short-run aggregate supply curve inward and the long-run aggregate supply curve outward
C)short-run aggregate supply curve outward but not the long-run aggregate supply curve
D)long-run aggregate supply curve inward but not the short-run aggregate supply curve
E)long-run and short-run aggregate supply curves outward

Question

Quizplus · Accepted Answer

A beneficial supply shock, such as a technological advancement, increases productivity, shifting both the short-run and long-run aggregate supply curves outward, indicating an increase in the economy's capacity to produce goods and services.

A Beneficial Supply Shock Would Shift the