ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A decrease in the money supply
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Technology that increases the productivity
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An investment increase
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A decrease in the price level
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Detailed explanation-1: -The new networking technology will increase the productivity of the economy. Thus the production at the same input prices will increase. As a result, the aggregate supply curve will shift to the right.
Detailed explanation-2: -The aggregate supply curve shifts to the right as productivity increases or the price of key inputs falls, making a combination of lower inflation, higher output, and lower unemployment possible.
Detailed explanation-3: -Answer and Explanation: To shift the long-run aggregate supply curve to the right, you must increase the potential output of an economy assuming it is using all resources available.
Detailed explanation-4: -Technology is a factor of an aggregate supply curve. As it gets improved, the cost of production decreases, and production increases, causing an increase in the aggregate supply curve. It causes the price levels to fall and output levels to rise in an economy.
Detailed explanation-5: -These aggregate supply shifters include Changes in Resource Prices, Changes in Resource Productivity, Business Taxes and Subsidies, and Government Regulations.