The long-run aggregate supply curve shifts right if Group of answer choices a) immigration from abroad increases b) the capital stock increases c) technology advances d) all of these are correct.

Question

Maeve Horton

Social Studies

22 August, 08:04

The long-run aggregate supply curve shifts right if Group of answer choices a) immigration from abroad increases b) the capital stock increases c) technology advances d) all of these are correct.

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Answers (1)

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Rowe · Answer 1

All of these are correct.

Explanation:

All of the options are are correct because:

a) Increase in immigration from abroad will increase the availability of labor which is a factor of production. There will now be more people to manufacture more goods and services which means increase in the amount of goods being supplied.

b) Increase in capital stock increases supply because again capital is a factor of production and the rise in the availability of any factor will improve the production process and increase the amount of goods available.

c) Advancement in technology will imply that advanced machinery will be available which can either produce for longer or better or both. Such improved efficiency in production directly implies that more goods will be available which also is increase in supply.