Technological progress will
A) shift the LAS curve rightward but will not shift the SAS curve.
B) shift both the LAS and SAS curves rightward.
C) shift the SAS curve rightward but will not shift the LAS curve.
D) not shift either the LAS or the SAS curve.

Question

Quizplus · Accepted Answer

Technological progress increases productivity, leading to an increase in potential output, which shifts both the Long-Run Aggregate Supply (LAS) and Short-Run Aggregate Supply (SAS) curves to the right.

Technological Progress Will