An increase in the education level inside a nation would cause the:
A) long-run aggregate supply curve to shift to the right.
B) long-run aggregate supply curve to shift to the left.
C) short-run aggregate supply curve to shift to the left.
D) aggregate demand curve to shift to the right.

Question

Quizplus · Accepted Answer

An increase in education level would lead to an increase in human capital, which in turn would lead to an increase in productivity and potential output. This would cause the long-run aggregate supply curve to shift to the right, as the economy would be able to produce more goods and services at each price level.

An Increase in the Education Level Inside a Nation Would