What is the relationship between an economy’s production possibilities curve and its long-run aggregate supply curve? Check all that apply.
1) An improvement in technology can shift both the production possibilities curve and the long-run aggregate supply curve.
2) Changes in the money supply can shift both the production possibilities curve and the long-run aggregate supply curve.
3) Rather than showing the output of physical units like the production possibilities curve does, the long-run aggregate supply curve shows the real dollar value of the units produced.
4) The long-run aggregate supply curve is an alternative way to visualize the economy’s production possibilities curve.