How does increased investment in technology affect long-run aggregate supply?

Increased investment in technology can significantly boost long-run aggregate supply, which is the total output of goods and services an economy can produce when it is operating at full capacity. When businesses invest in new technology, they often become more efficient, meaning they can produce more products with the same amount of resources. For example, if a factory buys advanced machines that operate faster and require less labor, it can increase its production without needing to hire more workers. As a result, the overall capacity of the economy grows, leading to a rightward shift in the long-run aggregate supply curve. This means that, in the long run, the economy can produce more goods and services, supporting economic growth and potentially lowering prices.