-In the above figure, the short-run aggregate supply curve is SAS1. If technology advances, there is
A) an upward movement along SAS1.
B) a downward movement along SAS1.
C) a shift to SAS0.
D) a shift to SAS2.

Question

-In the above figure, the short-run aggregate supply curve is SAS1. If technology advances, there is
A) an upward movement along SAS1. 
B) a downward movement along SAS1. 
C) a shift to SAS0. 
D) a shift to SAS2.

Quizplus · Accepted Answer

Advancements in technology typically increase productivity, which shifts the short-run aggregate supply (SAS) curve to the right, from SAS1 to SAS2, indicating an increase in the total supply of goods and services at every price level.

-In the Above Figure, the Short-Run Aggregate Supply Curve Is