When using AD/AS analysis to illustrate changes within an economy, which of the following would NOT need to be considered when looking at changes to economic growth?
A)Increased labour productivity
B)More efficient use of the capital stock
C)Developing a more efficient capital and finance sector
D)Increased availability of social capital

Question

Quizplus · Accepted Answer

Increased availability of social capital does not directly relate to the Aggregate Demand/Aggregate Supply (AD/AS) model's typical considerations for economic growth. The AD/AS model primarily focuses on factors that directly affect the economy's productive capacity (like labor productivity and capital efficiency) and overall demand and supply conditions. Social capital, while important for various aspects of economic and social development, does not directly influence the economic growth mechanisms depicted in the AD/AS analysis.

When Using AD/AS Analysis to Illustrate Changes Within an Economy