All of the following,except one,will cause an increase in both aggregate supply and long-run aggregate supply.Which is the exception?
A)An increase in human capital.
B)Technological improvement.
C)A decrease in factor prices.
D)An increase in the capital stock.

Question

Quizplus · Accepted Answer

A decrease in factor prices will cause a decrease in production costs, leading to an increase in both aggregate supply and long-run aggregate supply. The other choices (A, B, and D) will all lead to an increase in productivity and production capabilities, which will also increase aggregate supply and long-run aggregate supply.

All of the Following,except One,will Cause an Increase in Both