When the long-run aggregate supply curve shifts right, it represents:
A) economic growth.
B) pushing our economy beyond normal capacity.
C) an unemployment rate of zero.
D) negative inflation.

Question

Quizplus · Accepted Answer

When the long-run aggregate supply curve shifts right, it represents economic growth, as the economy is able to produce more goods and services in the long run without causing inflation. This could be due to technological advancements, improvements in infrastructure or education, or an increase in the labor force.

When the Long-Run Aggregate Supply Curve Shifts Right, It Represents