An increase in the quantity of capital shifts the _ _ curve _ and the curve
)
A) AD; leftward; SAS; rightward
B) AD; rightward; SAS; leftward
C) LAS; leftward; SAS; leftward
D) LAS; rightward; SAS; rightward

Question

Quizplus · Accepted Answer

An increase in the quantity of capital increases the economy's potential output, shifting the Long-Run Aggregate Supply (LAS) curve to the right. It also increases the Short-Run Aggregate Supply (SAS) as more capital allows for more production in the short term, shifting it to the right as well.

An Increase in the Quantity of Capital Shifts the _