-The change in potential real GDP and aggregate supply shown in the graph above can be a result of
A) a decrease in the money price of oil.
B) an increase in the real wage rate.
C) a fall in the price level.
D) a decrease in the money wage rate.
E) an increase in the quantity of capital.

Question

-The change in potential real GDP and aggregate supply shown in the graph above can be a result of
A) a decrease in the money price of oil. 
B) an increase in the real wage rate. 
C) a fall in the price level. 
D) a decrease in the money wage rate. 
E) an increase in the quantity of capital.

Quizplus · Accepted Answer

An increase in the quantity of capital can lead to an increase in potential real GDP and aggregate supply, as more capital typically enhances production capacity.

-The Change in Potential Real GDP and Aggregate Supply Shown