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Suppose There Is an Increase in the Quantity of Capital

Question 3

Multiple Choice

Suppose there is an increase in the quantity of capital.As a result, the SAS


A) and the LAS curves both shift rightward.
B) curve does not shift but the LAS curve shifts leftward.
C) curve does not shift but the LAS curve shifts rightward.
D) curve shifts rightward, but the LAS curve does not shift.
E) and the LAS curves both shift leftward.

Correct Answer:

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