AP Macroeconomics › 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?
An increase in worker productivity due to technological innovation
A decrease in interest rates due to action by the Federal Reserve
An increase in government spending due to government stimulus
A higher than estimated multipler effect
An increase in worker productivity will result in the supply curve shifting, because it results in the economy having more potential output.