A sustained increase in total output is possible only if the aggregate _____ curve shifts to the ____.

Question

Quizplus · Accepted Answer

An increase in total output can only occur if the aggregate supply curve shifts to the right, as this represents an increase in the willingness and ability of firms to supply goods and services at all price levels. A shift in the aggregate demand curve, on the other hand, would only result in a temporary increase in output, as eventually prices would rise and output would return to its original level in the long run.

A Sustained Increase in Total Output Is Possible Only If