The production possibility curve when there is a technological progress.

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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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Chapter P1, Problem 7KC

To determine

The production possibility curve when there is a technological progress.

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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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