PRC-3 · Chapter 13 · Question 48 of 50
Which of the following events would successfully shift the vertical Long-Run Aggregate Supply (LRAS) curve completely to the right?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A permanent improvement in national labour skills and technological advancements
Explanation
The LRAS curve only shifts when the actual physical capacity of the economy grows, which requires better technology, more resources, or a higher quality workforce.
More National Income and Its Determination MCQs
- Q50Which of the following macroeconomic components is NOT factored into the calculation of an economy's Aggregate Demand?
- Q1According to the macroeconomic theory of John Maynard Keynes, the actual level of real national output and employment in a capitalist…
- Q2A thriving economy reaches its maximum full-employment output capacity. However, total consumer, government, and investment spending…
- Q3If a country's Aggregate Demand intersects its Aggregate Supply curve at a point well below the full-employment level of output, the…
- Q4Which method of calculating a nation's Gross Domestic Product (GDP) sums up consumption (C), investment (I), government spending (G), and…