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Use the Following to Answer Questions

Question 76

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Use the following to answer questions .
Exhibit: Economic Growth, AD and AS Analysis Use the following to answer questions . Exhibit: Economic Growth, AD and AS Analysis -(Exhibit: Economic Growth, AD and AS Analysis) Assume that the economy is initially in long-run equilibrium. What happens in the long-run if the capital stock in this economy increases over time? A) The nation's capacity to produce will increase as represented by a rightward shift of the long-run aggregate supply curve. B) The nation's capacity to produce will increase as represented by a rightward shift of the short-run aggregate supply curve. The long-run aggregate supply curve and the aggregate demand curves remain unchanged. C) The nation's capacity to produce will increase as represented by a rightward shift of the long-run aggregate demand curve. D) The nation's capacity to produce will increase as represented by a rightward shift of the short-run aggregate supply curve and the aggregate demand curve. The long-run aggregate supply curve remains unchanged.
-(Exhibit: Economic Growth, AD and AS Analysis) Assume that the economy is initially in long-run equilibrium. What happens in the long-run if the capital stock in this economy increases over time?


A) The nation's capacity to produce will increase as represented by a rightward shift of the long-run aggregate supply curve.
B) The nation's capacity to produce will increase as represented by a rightward shift of the short-run aggregate supply curve. The long-run aggregate supply curve and the aggregate demand curves remain unchanged.
C) The nation's capacity to produce will increase as represented by a rightward shift of the long-run aggregate demand curve.
D) The nation's capacity to produce will increase as represented by a rightward shift of the short-run aggregate supply curve and the aggregate demand curve. The long-run aggregate supply curve remains unchanged.

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