The introduction of the power loom during the Industrial Revolution caused:
A) economic growth.
B) the long-run aggregate supply curve to shift to the right.
C) an increase in the potential output of the economy.
D) All of these are true.

Question

Quizplus · Accepted Answer

The power loom's introduction during the Industrial Revolution caused economic growth, which is reflected by a shift to the right of the long-run aggregate supply curve, and an increase in the potential output of the economy. Therefore, all of these statements are true.

The Introduction of the Power Loom During the Industrial Revolution