Final answer:
Changes in resources, technology, and institutions can cause shifts in long-run aggregate supply. These shifts can be caused by factors such as changes in the availability of resources, advancements in technology, and changes in institutions. The correct option is a.
Step-by-step explanation:
Changes in resources, technology, and institutions can cause shifts in long-run aggregate supply. A shift in the long-run aggregate supply curve occurs when there is a change in the potential output of an economy.
These shifts can be caused by factors such as changes in the availability of resources, advancements in technology that improve productivity, and changes in institutions like government regulations or labor laws.
For example, if there is a decrease in the availability of natural resources, such as oil, the long-run aggregate supply curve will shift to the left. This means that the potential output of the economy decreases, leading to higher prices and lower real GDP.
Similarly, if there are advancements in technology that improve productivity, the long-run aggregate supply curve will shift to the right. This means that the potential output of the economy increases, leading to lower prices and higher real GDP. The correct option is a.