Economics 11th Edition by William McEachern

Exercise 2

LONG-RUN AGGREGATE SUPPLY Determine whether each of the following, other things held constant, would lead to an increase, a decrease, or no change in long-run aggregate supply:
a. An improvement in technology
b. A permanent decrease in the size of the capital stock
c. An increase in the actual price level
d. An increase in the expected price level
e. A permanent increase in the size of the labor force