Relationship between economy production possibilities curve

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Reference no: EM13896698

What is the relationship between an economy’s production possibilities curve and its long-run aggregate supply curve? Check all that apply.

1) An improvement in technology can shift both the production possibilities curve and the long-run aggregate supply curve.

2) Changes in the money supply can shift both the production possibilities curve and the long-run aggregate supply curve.

3) Rather than showing the output of physical units like the production possibilities curve does, the long-run aggregate supply curve shows the real dollar value of the units produced.

4) The long-run aggregate supply curve is an alternative way to visualize the economy’s production possibilities curve.

Reference no: EM13896698

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