A change in the capital stock _ the short- run aggregate supply curve and the long- run aggregate supply curve.
A) shifts; does not shift
B) shifts; shifts
C) does not shift; does not shift
D) does not shift; shifts

Question

Quizplus · Accepted Answer

A change in the capital stock shifts both the short-run and long-run aggregate supply curves. An increase in capital stock will shift both curves to the right, while a decrease in capital stock will shift both curves to the left.

A Change in the Capital Stock _ the Short- Run