An increase in ________ would cause the long-run aggregate supply curve to shift to the right.
A)the demand for labour
B)the unemployment rate
C)inflation
D)productivity

Question

Quizplus · Accepted Answer

An increase in productivity would mean that firms are able to produce more output with the same inputs or produce the same output with fewer inputs. This would result in a decrease in production costs, allowing firms to produce more at every level of price. As a result, the long-run aggregate supply curve would shift to the right.

An Increase in ________ Would Cause the Long-Run Aggregate Supply