ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An increase in the available capital
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An increase in the available labourd
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An increase in the available technologye
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An increase in price expectations
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All of these answers shift the long-run aggregate supply curve
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Detailed explanation-1: -Answer and Explanation: Which of the following would not cause a shift in the long-run aggregate supply curve? An increase in price expectations would simply mean moving along the long-run aggregate supply curve, rather than a shift.
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: The answer is B). In the long run, production in a nation is determined by the amount of production inputs, such as capital and labor, and the level of technology. Changes to price level will therefore not affect output in the long run.
Detailed explanation-4: -Which of the following shifts the long-run aggregate supply curve to the left? an increase in the price of imported natural resources and an increase in trade restrictions.