All AP Macroeconomics Resources
Example Questions
Example Question #1 : How To Graph Long Run Aggregate Supply Curves With Aggregate Supply And Demand Graphs
The long-run aggregate supply curve is likely to shift to the right when which of the following occurs?
Possible Answers:
A decrease in interest rates due to action by the Federal Reserve
An increase in government spending due to government stimulus
An increase in worker productivity due to technological innovation
A higher than estimated multipler effect
Correct answer:
An increase in worker productivity due to technological innovation
Explanation:
An increase in worker productivity will result in the supply curve shifting, because it results in the economy having more potential output.
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