question 3\na positive technological shock causes\na) a rightward shift of the long - run aggregate supply…

question 3\na positive technological shock causes\na) a rightward shift of the long - run aggregate supply curve only\nb) a rightward shift of the short - run aggregate supply curve only\nc) a rightward shift in both the long - run and short - run aggregate supply curves\nd) a leftward shift in the aggregate demand curve

question 3\na positive technological shock causes\na) a rightward shift of the long - run aggregate supply curve only\nb) a rightward shift of the short - run aggregate supply curve only\nc) a rightward shift in both the long - run and short - run aggregate supply curves\nd) a leftward shift in the aggregate demand curve

Answer

Brief Explanations:

A positive technological shock improves production capabilities. In the long - run, it increases the economy's potential output, shifting the long - run aggregate supply curve to the right. In the short - run, firms can produce more with the new technology, shifting the short - run aggregate supply curve to the right as well.

Answer:

C. A rightward shift in both the long - run and short - run aggregate supply curves