Question

The long run aggregate supply curve shifts to the right given that

Answer 1

Answer:

there is a rise in the quantity of capital.

Explanation:

Aggregate supply describes the total supply of products and services produced in an economy at all prices per period. The aggregate supply curve, shortened to AS, shows the relationship between total supply from producers and different price levels.

A shift in the supply curve communicates a change in the quantity of supply. The Aggregate supply curve shift to the right when there is an increase in output. In other words, when output from producers increases, the aggregate supply curve shifts to the right. Output or productivity increases when the price of key inputs falls,  lower labor costs, or increased efficiency.