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Which of the following will most likely cause an increase (shift to the right) in both the long-run and short-run aggregate supply curves?
Group of answer choices
an increase in the national debt
an increase in income tax rates
a decrease in the economy's rate of investment and capital formation
a technological improvement in robotics that substantially increases labor productivity

Answer :

A technological improvement in robotics that substantially increases labor productivity will most likely cause an increase (shift to the right) in both the long-run and short-run aggregate supply curves.

What happens when long-run aggregate supply shifts right?

Over time, production factors influence how the aggregate supply curve shifts. A rise in the production factors causes the curve to shift to the right, whereas a fall in the production factors causes a shift to the left.

As productivity rises or the price of important inputs decreases, the aggregate supply curve shifts to the right, allowing for a combination of lower inflation, higher output, and lower unemployment. The supply curve will move to the right as a result of a technological advancement that lowers production costs, producing more at a given price while also increasing output.

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