aq6feb11 - season – Yes increases capacity to produce...

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6 February 2003 Which of the following would increase [shift to the right] LAS [long-run aggregate supply]? a. An influx of new immigrants of working age – Yes, increases labor force b. Technological advance – Yes, technological advance increases potential GDP c. Earthquakes that destroy several cities – NO, reduces capital stock and potential GDP d. Climate change that lengthens the growing
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Unformatted text preview: season – Yes, increases capacity to produce agricultural output e. The typical worker retiring earlier – NO, reduces labor force f.A switch of expenditure from investment to defense spending – NO, reduces future capital stock g. A switch of expenditure from defense spending to investment – Yes, increases future capital stock...
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