Which of the following statements is true?
A) The long-run aggregate supply curve can never shift to the left.
B) The long-run aggregate supply curve can never shift to the right.
C) The long-run aggregate supply curve can shift to both the left and the right.
D) The long-run aggregate supply curve always stays in the same location because potential real GDP cannot change.
E) New technologies affect only the short-run aggregate supply curve, not the long-run aggregate supply curve.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve can shift to the left or right depending on changes in factors like technology, labor force, and capital stock. For example, a technological advancement can shift the long-run aggregate supply curve to the right while a decrease in immigration can shift it to the left. Therefore, option C is the correct answer.

Which of the Following Statements Is True