Asked by Dorothy Dietrich on Jun 24, 2024
Verified
Technological progress shifts the long-run aggregate supply curve to the right.
Long-Run Aggregate Supply Curve
A graphical representation showing the relationship between the overall price level and the total output that firms in the economy are willing to produce when all prices, including nominal wages, are fully flexible.
Technological Progress
Innovations and advances in technology that improve the efficiency and capabilities of production, services, and products.
- Identify the immediate and enduring impacts of monetary policy on the economic landscape.
- Understand the underlying reasons for the forms of aggregate demand and aggregate supply curves.
Verified Answer
NB
Narmeen BashirJul 01, 2024
Final Answer :
True
Explanation :
Technological progress increases the efficiency of production, allowing the economy to produce more goods and services with the same amount of resources, which shifts the long-run aggregate supply curve to the right, indicating an increase in potential output.
Learning Objectives
- Identify the immediate and enduring impacts of monetary policy on the economic landscape.
- Understand the underlying reasons for the forms of aggregate demand and aggregate supply curves.