Which of the following is true of a rightward shift in the LAS curve?
A)The AS will not shift.
B)The AS will shift right.
C)It could not be caused by an improvement in technology.
D)It will raise the level of prices.
E)It would result if the aggregate demand curve shifted to the right.

Question

Quizplus · Accepted Answer

A rightward shift in the Long-Run Aggregate Supply (LAS) curve typically indicates an increase in the productive capacity of the economy, often due to factors like technological improvements. This can lead to a rightward shift in the Short-Run Aggregate Supply (AS) curve as well, reflecting the increased output at existing price levels.

Which of the Following Is True of a Rightward Shift