________ may cause a shift of the long-run aggregate supply curve.
A)A major earthquake
B)A change in expected inflation
C)A price shock
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

A major earthquake can cause a shift in the long-run aggregate supply curve because it can destroy capital, reduce labor supply, and disrupt production, leading to a decrease in the potential output of an economy. Changes in expected inflation and price shocks typically affect the short-run aggregate supply curve rather than the long-run aggregate supply curve, which is influenced by factors that change the economy's productive capacity.

________ May Cause a Shift of the Long-Run Aggregate Supply