Question
In the AD-AS model,if technological advancements such as automation allow firms to be more productive, then: Theshort-run aggregate supply will first shift to the left;
In the AD-AS model,if technological advancements such as automation allow firms to be more productive, then:
Theshort-run aggregate supply will first shift to the left; however, as wages adjust, it shifts back to the right. Overall, long-run aggregate supply does not change.
Theshort-run aggregate supply will first shift to the right; however, as wages adjust, it shifts back to the left. Overall, long-run aggregate supply does not change.
Thelong-run aggregate supply will first shift to the right.
Neither short-run aggregate supply nor long-run aggregate supply will be affected.
The long-run aggregate supply curve will shift to the left.
Can you help please :)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Economics
Authors: David Colander
7th Edition
0073402869, 9780073402864
