A company decides to invest in new technology that increases production efficiency. How would this decision most likely affect the long-run aggregate supply (LRAS)?

When a company invests in new technology to make production more efficient, it can produce more goods with the same resources. This increase in production capacity means the economy can supply more products over time, which shifts the long-run aggregate supply (LRAS) curve to the right. For example, if a factory uses advanced machines that double its output, it can meet higher demand without needing more workers or materials. As the LRAS shifts right, it often leads to economic growth, higher employment, and potentially lower prices for consumers. Overall, this investment enhances the economy's ability to produce, benefiting everyone involved.