πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!

  • google app store apple app store
  • βœ–

      Question

      In the context of the Classical model, which of the

      following would cause a shift in the long-run aggregate supply curve (LRAS)?
      A An increase in the money supply Correct Answer Incorrect Answer
      B An improvement in technology Correct Answer Incorrect Answer
      C An increase in consumer spending Correct Answer Incorrect Answer
      D A decrease in the price level Correct Answer Incorrect Answer

      Solution

      LRAS will only shift because of either increase in productivity/ improvement in technology. Β  For options a and b and d, the aggregate demand curve shifts to Right.

      Practice Next
      More Research Questions
      ask-question