📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    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.   For options a and b and d, the aggregate demand curve shifts to Right.

    Practice Next
    More Research Questions
    ask-question