Increases in the quality of inputs that do not affect the quantity of those inputs shift LAS rightward and increase aggregate quantity supplied.

Question

Quizplus · Accepted Answer

Increases in the quality of inputs improve productivity, which shifts the Long-Run Aggregate Supply (LRAS) rightward, indicating a potential increase in the economy's output without necessarily increasing the aggregate quantity supplied in the short run.

Increases in the Quality of Inputs That Do Not Affect