Question

In the aggregate demand/aggregate supply model, an increase in a country's sustainable potential output is represented by Group of answer choices an increase in aggregate demand. a decrease in aggregate demand. an increase in long-run aggregate supply. an increase in the general level of prices.

Answer 1

an increase in long-run aggregate supply

Explanation:

It is determined the upward slope represented in the AD AS. This shows the increase in a country's sustainable potential output as a function of its aggregate in long run demand.

The increase must be seen in long run and not in short term as only then can we understand the work in long term and its sustainability.  The other options do not represent sustainable development.