Which of the following would cause the long-run aggregate supply curve to shift rightward?
A)a rise in energy prices
B)a drop in the actual price level
C)workers opting for more leisure time and less time on the job
D)a level of investment spending that is less than depreciation of the capital stock
E)a technological breakthrough with widespread practical applications that occurs in the microcomputer industry

Question

Quizplus · Accepted Answer

A technological breakthrough with widespread practical applications that occurs in the microcomputer industry would lead to increased productivity and lower costs for firms in many industries, resulting in an increase in potential output and a rightward shift of the long-run aggregate supply curve. The other options would all lead to a decrease in potential output and a leftward shift of the long-run aggregate supply curve.

Which of the Following Would Cause the Long-Run Aggregate Supply