Increases in the capital stock:
A)Shift the short run aggregate supply curve to the right.
B)Shift the long run aggregate supply curve to the right.
C)Shift both short run and long run aggregate supply curves to the right.
D)Do none of the above

Question

Increases in the capital stock:
A)​Shift the short run aggregate supply curve to the right.
B)​Shift the long run aggregate supply curve to the right.
C)​Shift both short run and long run aggregate supply curves to the right.
D)​Do none of the above

Quizplus · Accepted Answer

Increases in the capital stock enhance the productive capacity of an economy, shifting both the short run and long run aggregate supply curves to the right.

Increases in the Capital Stock