Question

a new batch of college graduates enter the workforce boosting the labor productivity of corporate america. illustrate what occurs to the aggregate supply curve by shifting it in the appropriate direction. provide your answer below:

Explanation:

When a new batch of college graduates enters the workforce and boosts labor productivity, it means there are more workers (increasing labor supply) and they are more productive. This leads to an increase in the economy's potential output. In the aggregate - supply (AS) model, an increase in potential output is represented by a right - ward shift of the aggregate - supply curve. A right - ward shift of the AS curve indicates that at each price level, the economy can produce more output.

Answer:

The aggregate - supply curve shifts to the right.