All of the following shift the LAS curve EXCEPT
A) a change in the capital stock.
B) an increase in the money wage rate.
C) an increase in the stock of human capital.
D) technological progress.

Question

Quizplus · Accepted Answer

An increase in the money wage rate affects the short-run aggregate supply (SAS) but not the long-run aggregate supply (LAS) because, in the long run, prices and wages are flexible and can adjust. Changes in the capital stock, human capital, and technological progress directly affect the economy's productive capacity, thus shifting the LAS curve.

All of the Following Shift the LAS Curve EXCEPT