The introduction of the Internet over the last 20 years has caused:
A)the long-run aggregate supply curve to shift to the right.
B)the long-run aggregate supply curve to shift to the left.
C)the short-run aggregate supply curve to shift to the left.
D)The long-run aggregate supply is fixed and does not move.

Question

Quizplus · Accepted Answer

The introduction of the Internet has increased productivity and efficiency, leading to lower costs for businesses and an increase in potential output. This shift in the economy's productive capacity represents a rightward shift in the long-run aggregate supply curve.

The Introduction of the Internet Over the Last 20 Years