Which of the following would shift the long-run aggregate supply curve right?
A)Both an increase in the capital stock and an increase in the price level
B)An increase in the capital stock, but not an increase in the price level
C)An increase in the money supply, but not an increase in the capital stock
D)Neither an increase in the money supply nor an increase in the capital stock

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve shifts right with an increase in the productive capacity of the economy, such as an increase in the capital stock. Changes in the price level or money supply do not affect the long-run aggregate supply.

Which of the Following Would Shift the Long-Run Aggregate Supply