Which of the following shift the LAS curve rightward?
A) a decrease in the labor force
B) a decrease in the money wage
C) an increase in the price level
D) a increase in the education level of the labor force

Question

Quizplus · Accepted Answer

An increase in the education level of the labor force would shift the LAS (long-run aggregate supply) curve rightward because it increases the productivity and skills of the labor force, leading to more efficient use of resources and higher potential output in the long run. A decrease in the labor force (A) would shift LAS leftward because it reduces the potential output of the economy. A decrease in the money wage (B) would not shift LAS, but would shift the SAS (short-run aggregate supply) curve rightward, as it would reduce the cost of production for firms and increase their willingness to supply output in the short run. An increase in the price level (C) would not shift LAS, but would shift SAS leftward, as it would increase the cost of production for firms and reduce their willingness to supply output in the short run.

Which of the Following Shift the LAS Curve Rightward