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Figure: Determining SRAS Shifts
-(Figure: Determining SRAS Shifts) If there are advances in technology,the short-run aggregate supply curve will shift from SRAS₀ to _____ and the price level will become _____.

Question

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Figure: Determining SRAS Shifts

-(Figure: Determining SRAS Shifts) If there are advances in technology,the short-run aggregate supply curve will shift from SRAS₀ to _____ and the price level will become _____.

Quizplus · Accepted Answer

Advances in technology increase the productive capacity of the economy, leading to a rightward shift in SRAS. This will result in a lower price level, as more goods and services are available at the same price.

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