MCQM4379 · [1] An economy is producing at a point inside its production possibilities curve. Firms then bring idle machinery back into use and re-employ workers, raising output. On an AD/AS diagram this is shown by Aa rightward shift of the long-run aggregate supply curve.Ban outward shift of the production possibilities curve.Ca rightward shift of aggregate demand with real output rising toward full employment.Da leftward shift of short-run aggregate supply raising the price level. Next question →