Which of the following shifts both the short-run and the long-run aggregate supply right?
A)an increase in the actual price level
B)an increase in the expected price level
C)an increase in the capital stock
D)an increase in money supply

Question

Quizplus · Accepted Answer

An increase in the capital stock shifts both the short-run and the long-run aggregate supply to the right. This could happen due to investments or technological advancements leading to more efficient production processes. Increases in actual or expected price levels and money supply would only shift the short-run aggregate supply right.

Which of the Following Shifts Both the Short-Run and the Long-Run