Which of the following shifts long-run aggregate supply right?
A)an increase in either the physical or human capital stock
B)an increase in the human but not the physical capital stock
C)an increase in the physical capital stock, but no the human capital stock
D)neither an increase in the physical capital stock or the human capital stock

Question

Quizplus · Accepted Answer

An increase in either the physical or human capital stock can lead to an increase in the productivity of an economy, which shifts the long-run aggregate supply curve to the right. Option B and C are incorrect as they state an increase in only one type of capital stock, but both physical and human capital are required to boost productivity. Option D is incorrect as any increase in capital stocks can have a positive effect on long-run aggregate supply.

Which of the Following Shifts Long-Run Aggregate Supply Right