Which would shift the long run aggregate supply curve outwar

Which would shift the long run aggregate supply curve? outwards?

A.an outward shift in the production possibilities curve

B.All of these.

C.more imports

D.a higher price level

Solution

Correct option is (A).

The production possibilities curve (PPC) shifts rightward when there is an increase in resource endowment, improvement in productivity or technological enhancement. All these factors increase potential GDP and shifts long run AS curve rightward.