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Capital accumulation through saving and investment would shift the long-run aggregate supply curve (to the left,...

Capital accumulation through saving and investment would shift the long-run aggregate supply curve (to the left, to the right). Technological progress would shift the long-run aggregate supply (to the left, to the right). (2 points; 1 point each)

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Answer #2

In both cases, LRAS shifts to right

Capital Accumulation will shifts the long run aggregate supply curve to the right. More and more capital raises the economy's resources through more savings and investment. Higher resources raises the potential level of output and shifts the vertical LRAS to the right

Technological improvements shift the LRAS curve to the right. Such improvements reduces the firm's cost of production and allow it to produce efficiency with minimal economic resource.

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