In 2023, many firms began using sophisticated artificial intelligence (AI) programs, such as Chat GPT, called chatbots. For example, an article in the Wall Street Journal discussed the use of chatbots at the White Castle restaurant chain: “Restaurant executives say, Julia, as White Castle’s system is called, and its chatbot colleagues can make their restaurants more efficient and free up often-scarce workers to do other jobs.”

a. How are chatbots likely to affect the costs of the firms that buy them?

b. How are chatbots likely to affect the U.S. economy’s short-run aggregate supply curve and long-run aggregate supply curve?