The short-run aggregate supply curve shifts when
I.the full-employment quantity of capital changes.
II.technology advances.
A) I only
B) II only
C) neither I nor II
D) I and II

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve shifts due to both changes in the full-employment quantity of capital and advancements in technology, as both factors affect the production capacity and costs in the short run.

The Short-Run Aggregate Supply Curve Shifts When