Increase in Aggregate Supply in the Long Run

Factors Affecting Aggregate Supply

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Question

Which of the following will most likely increase aggregate supply in the long run?

Answers

Explanations

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A. B. C. D. E.

Explanation

Improvements in technology can cause the aggregate supply curve to permanently shift to the right. This is because such advances make it possible to produce and sustain a larger rate of output from a specific resource supply.