A change in the full-employment quantity of labor ________ the short-run aggregate supply curve and ________ the long-run aggregate supply curve.
A) shifts; shifts
B) shifts; does not shift
C) does not shift; shifts
D) does not shift; does not shift

Question

Quizplus · Accepted Answer

A change in the full-employment quantity of labor shifts both the short-run and long-run aggregate supply curves because it affects the economy's potential output.

A Change in the Full-Employment Quantity of Labor ________ the Short-Run