_____ will most likely increase the economy's long-run aggregate supply.

Question

Quizplus · Accepted Answer

Advances in technology lead to an increase in the economy's long-run aggregate supply by increasing productivity and efficiency. A low rate of investment (A) would likely decrease the long-run aggregate supply, unfavorable weather in the corn belt (B) would affect short-term supply and not have a significant impact on long-run supply, and an increase in the expected inflation rate (D) would decrease the long-run supply by discouraging investment and causing uncertainty.

_____ Will Most Likely Increase the Economy's Long-Run Aggregate Supply