Answer
a) Increase long-run aggregate supply
b) No change on long-run aggregate supply
c) Increase long-run aggregate supply
d) No change on long-run aggregate supply
Work Step by Step
a) With more immigrants in the country, full employment is increased. In turn, aggregate supply increases.
b) In the short run, the aggregate supply curve is shifted up. However, in the long run, this shift will be negated. As a result, long run aggregate supply stays the same.
c) With an increase in technology, more output can be achieved with the same amount of labor. Thus, aggregate supply increases in the long run.
d) In the short run, the factories are not working. However, in the long run, the factories are rebuilt and return to a working status. Thus, there is no change to long run aggregate supply.
