Figure 13-2 -Refer to Figure 13-2.Ceteris paribus,an increase in the capital stock would be represented by a movement from A)SRAS₁ to SRAS₂. B)SRAS₂ to SRAS₁. C)point A to point B. D)point B to point A.

Question

Quizplus · Accepted Answer

An increase in the capital stock would shift the SRAS curve to the right, indicating a greater potential for output at all price levels. This is represented by a movement from SRAS₁ to SRAS₂.

Figure 13-2 -Refer to Figure 13-2.Ceteris Paribus,an Increase in the Capital Stock