How to graph long-run aggregate supply curves with aggregate supply and demand graphs

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AP Macroeconomics › How to graph long-run aggregate supply curves with aggregate supply and demand graphs

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The long-run aggregate supply curve is likely to shift to the right when which of the following occurs?

An increase in worker productivity due to technological innovation

CORRECT

A decrease in interest rates due to action by the Federal Reserve

An increase in government spending due to government stimulus

A higher than estimated multipler effect

An increase in worker productivity will result in the supply curve shifting, because it results in the economy having more potential output.