The introduction of the Internet over the last 20 years has caused the:
A) long-run aggregate supply curve to shift to the right.
B) long-run aggregate supply curve to shift to the left.
C) short-run aggregate supply curve to shift to the left.
D) long-run aggregate supply to remain fixed.

Question

Quizplus · Accepted Answer

The introduction of the Internet has improved productivity by increasing efficiency and technological advancements, leading to a shift to the right in the long-run aggregate supply curve. This is because technological progress leads to an increase in the amount of output a given amount of inputs can produce, which leads to an increased potential output in the long-run.

The Introduction of the Internet Over the Last 20 Years