A rightward shift in the LRAS curve may be caused by an increase in the

Question

Quizplus · Accepted Answer

A rightward shift in the LRAS curve implies an increase in potential output of the economy. This can be achieved through various factors that enable an economy to produce more goods and services in the long run. The factors that can cause a rightward shift in the LRAS curve include an increase in the amount of the capital stock, an increase in the size of the labour force, an increase in the availability of natural resources, and an improvement in technology. Option E includes all these factors, so it is the best choice.

A Rightward Shift in the LRAS Curve May Be Caused