An increase in the amount of human capital ________ the short-run aggregate supply curve and ________ the long-run aggregate supply curve.
A)does not shift; does not shift
B)does not shift; shifts
C)shifts; does not shift
D)shifts; shifts

Question

Quizplus · Accepted Answer

An increase in human capital enhances productivity, which can increase both short-run and long-run aggregate supply, shifting both curves to the right.

An Increase in the Amount of Human Capital ________ the Short-Run