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Figure: Long-Run Aggregate Supply Curves
-(Figure: Long-Run Aggregate Supply Curves)Which of the following can explain the shift of the long-run aggregate supply curve from A to B in the figure?
A) development of new technology
B) war
C) negative supply shock
D) oil crisis

Question

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Figure: Long-Run Aggregate Supply Curves 
-(Figure: Long-Run Aggregate Supply Curves)Which of the following can explain the shift of the long-run aggregate supply curve from A to B in the figure?
A) development of new technology 
B) war 
C) negative supply shock 
D) oil crisis

Quizplus · Accepted Answer

The development of new technology can shift the long-run aggregate supply curve from A to B, as it increases the potential output and productivity of the economy.

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