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olchik [2.2K]
2 years ago
14

Select the TRUE statement below regarding aggregate supply in the long and short run.

Mathematics
1 answer:
Ivenika [448]2 years ago
4 0

Answer:

The discovery of new resources can cause the LRAS curve to move.

Step-by-step explanation:

In the short-run, a new resource will not impact supply

Like the supply for maritime transportation when the steam-engine were invented.

At the beginning of the industrial revolution, the ship keep relying on sails. But, as time passes, the adoption of the new resource and method of production push the Long Run Aggregate Supply. As more transportation was possible with steam-engine using coal.

That will be the case for an improvement in the method of production. Then, following the same example, a change in a better quality of the resource like, replacing the coal engines with diesel engine generates an improvement in the quantity supplied as it is more efficient and can be used

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