If there is an increase in technology, the long-run aggregate supply curve shifts rightward, but the short-run aggregate supply curve does not shift.

Question

Quizplus · Accepted Answer

Both the long-run aggregate supply (LRAS) and the short-run aggregate supply (SRAS) curves can shift rightward with an increase in technology, as technology improvements enhance productivity, making it possible for the economy to produce more goods and services with the same amount of resources.

If There Is an Increase in Technology, the Long-Run Aggregate