Concept: Technological Progress/LRAS Suppose an economy experiences technological progress and this causes a shift in the LRAS curve. Which of the following should not occur? Question Help OA. There will be reduced pressure on prices as the economy has the ability to produce more real GDP OB. There should be a shift to the right in the SRAS curve because the increased technology reduces the cost of producing goods in the economy. OC. There will be an increase in government purchases as the economy has more income. OD. There should be an increase in the amount of income which will cause an increase in AD

Concept: Technological Progress/LRAS Suppose an economy experiences technological progress and this causes a shift in the LRAS curve. Which of the following should not occur? Question Help OA. There will be reduced pressure on prices as the economy has the ability to produce more real GDP OB. There should be a shift to the right in the SRAS curve because the increased technology reduces the cost of producing goods in the economy. OC. There will be an increase in government purchases as the economy has more income. OD. There should be an increase in the amount of income which will cause an increase in AD

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Concept: Technological Progress/LRAS
Suppose an economy experiences technological progress and this causes a shift in the LRAS curve.
Which of the following should not occur?
Question Help
OA. There will be reduced pressure on prices as the economy has the ability to produce more real GDP
OB. There should be a shift to the right in the SRAS curve because the increased technology reduces the cost of producing goods in the economy.
OC. There will be an increase in government purchases as the economy has more income
OD. There should be an increase in the amount of income which will cause an increase in AD

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