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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