Long-run aggregate supply increases as:
A)new production technology is introduced.
B)the quality of labor declines.
C)the average price level increases.
D)natural resources become depleted.
E)corporate wage rates increase.

Question

Quizplus · Accepted Answer

New production technology allows firms to produce more efficiently and at lower costs, which increases the potential output of the economy and shifts the long-run aggregate supply curve to the right. B, C, D, and E would all decrease the long-run aggregate supply.

Long-Run Aggregate Supply Increases As