Which of these are consequences of an increase in long-run aggregate supply?

Which of these are consequences of an increase in long-run aggregate supply? Correct Answer(s) Drag appropriate answer(s) here an increase in the price level an increase in full-employment output an increase in short-run aggregate supply a decrease in the long-run rate of unemployment ut Drag appropriate answer(s) here Incorrect Answer(s)

Answer

The rightward shift of the long-run aggregate supply curve is
the result of economic growth. Economic growth refers to an
increase in the level of production of goods and services. The
production level increase because of improved technologies, a
higher level of labor supply and labor productivity and an overall
increase in the productive capacity of the economy.

Therefore, a rightward shift in the long-run aggregate supply
curve is:

1. An increase in the full-employment output: Economic growth
implies higher level of output

2. An increase in the short-run aggregate supply curves:
Increments in the short-run impact the long-run productivity in the
economy.

The incorrect options are:

1. A decrease in the long-run rate of unemployment: The increase
in the economic growth may be the result of increased productivity
and the use of better technology and hence may not mean increased
employment of labor in the long run.

2. An increase in price level: The long-run aggregate supply
curve is vertical and hence it has no direct relationship with
price.