In the neoclassical model, economic growth through technological change over time shifts potential gdp and the ________ gradually to the right.

Respuesta :

Neoclassical economists believe that technological change can lead to economic growth which would lead to a rightward shift in potential GDP and the Vertical AS curve.

How does technology affect economic growth?

Neoclassical economists are of the opinion that even though the resources available to us are not enough to satisfy our needs, a growth in technological advancement can change this.

They believe that as better technology is invented, it would lead to increased production which means that the Aggregate supply curve will shift to the right in the long term.

This increase in Aggregate supply will lead to an increase in potential GDP as well.

In conclusion, the answer is the AS curve.

Find out more on the Aggregate Supply Curve at https://brainly.com/question/14748223

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