An increase in the amount of capital leads to ________ the aggregate production function and a technological advance leads to ________ the aggregate production function.
A) a movement along; a movement along
B) a movement along; an upward shift
C) an upward shift; an upward shift
D) a downward shift; an upward shift

Question

Quizplus · Accepted Answer

An increase in the amount of capital leads to an upward shift of the aggregate production function since more capital means more output can be produced. 
A technological advance also leads to an upward shift of the aggregate production function, as it improves productivity and increases output.

An Increase in the Amount of Capital Leads to ________