The long-run aggregate supply curve shifts to the right when there is ________.
A) an increase in the total amount of capital in the economy
B) an increase in the available technology
C) a decrease in the natural rate of unemployment
D) all of the above

Question

Quizplus · Accepted Answer

All of the options listed would lead to an increase in the economy's potential output and productive capacity, causing the long-run aggregate supply curve to shift to the right. An increase in capital would allow for more production, an increase in available technology would allow for more efficient production, and a decrease in the natural rate of unemployment would mean there are more workers available to produce goods and services.

The Long-Run Aggregate Supply Curve Shifts to the Right When