Which of the following changes would shift the long-run aggregate supply curve?
A)a change in the wage rate paid to labour in the economy
B)a change in technology in the economy
C)a change in the cost of capital in the economy
D)a change in the rental value of land in the economy

Question

Quizplus · Accepted Answer

Changes in technology affect productivity levels, which impact the long-run aggregate supply curve. Increases in technology lead to higher productivity levels, shifting the long-run aggregate supply curve to the right, while decreases in technology have the opposite effect, shifting it to the left. The other options (A, C, and D) may shift the short-run aggregate supply curve, but not the long-run aggregate supply curve.

Which of the Following Changes Would Shift the Long-Run Aggregate