The long-run aggregate supply curve shifts right if
A)immigration from abroad increases.
B)the capital stock increases.
C)technology advances.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Immigration from abroad increases the supply of labor, which shifts the long-run aggregate supply curve to the right. Increasing the capital stock raises the productive capacity of the economy, leading to a rightward shift of the long-run aggregate supply curve. Technological progress increases productivity and efficiency, resulting in a rightward shift of the long-run aggregate supply curve. Therefore, all of the above options are correct.

The Long-Run Aggregate Supply Curve Shifts Right If