Figure 8-5 Panel (A) Shows an Economy's Aggregate Production

Figure 8-5 Panel (a) shows an economy's aggregate production function, Panel (b) shows the labor market and Panel (c) shows the economy's long-run aggregate supply curve.
-Refer to Figure 8-5. If a change in technology moves the aggregate production function in Panel (a) upwards, what happens to the economy's potential output?

A) Potential output remains unchanged.
B) Potential output increases.
C) Potential output decreases.
D) Potential output could increase or decrease depending on what happens in the labor market.

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