Increases in the quality of inputs that do not affect the quantity of those inputs,
A) shift LAS rightward but not SAS.
B) increase aggregate quantity supplied.
C) shift both LAS and SAS rightward.
D) shift SAS rightward but not LAS.
E) shift LAS rightward and increase aggregate quantity supplied.

Question

Quizplus · Accepted Answer

Improvements in input quality enhance productivity, shifting both the Long-Run Aggregate Supply (LAS) and Short-Run Aggregate Supply (SAS) curves to the right.

Increases in the Quality of Inputs That Do Not Affect