-In the above figure, B is the current long- run aggregate supply curve and E is the current short- run aggregate supply curve. If there is an increase in the full- employment quantity of labor, then the long- run aggregate supply curve and the short- run aggregate supply curve
A) shift to C and F, respectively.
B) remain B and E.
C) shift to A and D, respectively.
D) shift to A and F, respectively.

Question

-In the above figure, B is the current long- run aggregate supply curve and E is the current short- run aggregate supply curve. If there is an increase in the full- employment quantity of labor, then the long- run aggregate supply curve and the short- run aggregate supply curve
A) shift to C and F, respectively. 
B) remain B and E. 
C) shift to A and D, respectively. 
D) shift to A and F, respectively.

Quizplus · Accepted Answer

An increase in the full-employment quantity of labor will shift the long-run aggregate supply curve to the right, from B to C, and the short-run aggregate supply curve to the right, from E to F.

-In the Above Figure, B Is the Current Long- Run