Any permanent change in the quantity of any factor of production available - capital,technology,land,or labor - can cause a shift in both the long-run and short-run aggregate supply curves.

Question

Quizplus · Accepted Answer

Any permanent change in the quantity of any factor of production can shift the long-run aggregate supply curve, while temporary changes only affect the short-run aggregate supply curve. Therefore, a permanent change in any factor can result in shifts in both the short-run and long-run aggregate supply curves.

Any Permanent Change in the Quantity of Any Factor of Production