Suppose that entrepreneurs develop new technologies that increase the economy's productivity. As a result, the aggregate supply curve would
A) shift to the right
B) shift to the left
C) become horizontal
D) become vertical

Question

Quizplus · Accepted Answer

When new technologies increase the economy's productivity, it means that the economy can produce more goods and services for the same amount of inputs. This increase in productivity shifts the aggregate supply curve to the right, indicating an increase in the total supply of goods and services at every price level.

Suppose That Entrepreneurs Develop New Technologies That Increase the Economy's