Answer to Question #149127 in Macroeconomics for Zulekha

Question

Describe the possible effects of on an economy of a rightward shift of long run aggregate supply curve

Answer 1

1. Productivity increases. Productivity will tend to increase because of the higher rates of outputs.
2. Lower unemployment.This is because of more output that are generated from the products.
3. There is higher output.because of the increased level of the productivity