QuestionJuly 30, 2025

The long-run aggregate supply curve will shift to the right if there is a decrease in population. the economy experiences high levels of inflation. net exports decrease. the economy experiences technological change

The long-run aggregate supply curve will shift to the right if there is a decrease in population. the economy experiences high levels of inflation. net exports decrease. the economy experiences technological change
The long-run aggregate supply curve will shift to the right if
there is a decrease in population.
the economy experiences high levels of inflation.
net exports decrease.
the economy experiences technological change

Solution
4.3(198 votes)

Answer

The economy experiences technological change. Explanation 1. Identify Factors Affecting Long-Run Aggregate Supply The long-run aggregate supply (LRAS) curve shifts due to changes in factors like technology, resources, and productivity. 2. Analyze Each Option - Decrease in population: Reduces labor force, shifting LRAS left. - High levels of inflation: Affects price level, not LRAS directly. - Decrease in net exports: Affects demand, not LRAS directly. - Technological change: Increases productivity, shifting LRAS right.

Explanation

1. Identify Factors Affecting Long-Run Aggregate Supply<br /> The long-run aggregate supply (LRAS) curve shifts due to changes in factors like technology, resources, and productivity.<br /><br />2. Analyze Each Option<br /> - Decrease in population: Reduces labor force, shifting LRAS left.<br /> - High levels of inflation: Affects price level, not LRAS directly.<br /> - Decrease in net exports: Affects demand, not LRAS directly.<br /> - Technological change: Increases productivity, shifting LRAS right.
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