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

Question

Quizplus · Accepted Answer

An increase in the capital stock increases the productive capacity of an economy, shifting both the short-run and long-run aggregate supply curves to the right.

A Change in the Capital Stock ___________The Short-Run Aggregate Supply