An increase in the amount of human capital ________ the short-run aggregate supply curve and ________ the long-run aggregate supply curve.
A) shifts; shifts
B) shifts; does not shift
C) does not shift; shifts
D) does not shift; does not shift

Question

Quizplus · Accepted Answer

An increase in human capital enhances productivity, which can shift both the short-run and long-run aggregate supply curves to the right, indicating an increase in the economy's capacity to produce goods and services.

An Increase in the Amount of Human Capital ________ the Short-Run