Technological progress shifts the long-run aggregate supply curve to the right.

Name: Technological progress shifts the long-run aggregate supply curve to the right.
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Question

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Technological progress increases the efficiency of production, allowing the economy to produce more goods and services with the same amount of resources, which shifts the long-run aggregate supply curve to the right, indicating an increase in potential output.

Technological Progress Shifts the Long-Run Aggregate Supply Curve to the Right