what-is-the-likely-impact-on-the-ad-as-model-if-there-is-a-technological-advance

Question

What is the likely impact on the AD-AS model if there is a technological advancement in production?

Accepted Answer

Short run aggregate supply shifts to the right, decreasing price level and increasing real GDP

Answer

Short run aggregate supply shifts to the left, increasing price level and decreasing real GDP

Answer

Aggregate demand shifts to the left, decreasing both price level and real GDP

Answer

Aggregate demand shifts to the right, increasing both price level and real GDP