The invention of the integrated circuit by Jack Kilby of Texas Instruments gave rise to the information age.What did this technological change do to the short-run supply curve?
A)It shifted the short-run aggregate supply curve to the left.
B)It shifted the short-run aggregate supply curve to the right.
C)It moved the economy up along a stationary short-run aggregate supply curve.
D)It moved the economy down along a stationary short-run aggregate supply curve.
E)It made the short-run aggregate supply curve flatter.

Question

Quizplus · Accepted Answer

The invention of the integrated circuit increased productivity and efficiency in the production of goods and services. As a result, it lowered production costs, which shifted the short-run supply curve to the right. This increase in aggregate supply also contributed to economic growth and expansion.

The Invention of the Integrated Circuit by Jack Kilby of Texas