Question

In: Economics

The​ long-run aggregate supply curve shifts right at the same time as A.wages increase. B.the production...

The​ long-run aggregate supply curve shifts right at the same time as

A.wages increase.

B.the production possibilities curve shifts inward.

C.the inflation rate increases.

D.the production possibilities curve shifts outward.

Solutions

Expert Solution

The answer is: D) the production possibilities curve shifts outward.

When the curve shifts outward, or to the right, that means output is increasing. When the curve shifts inward, or to the left, that means output is decreasing.

Rahul Sunny answered 1 year ago
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