An increase in the capital stock shifts
a) short-run aggregate-supply curve to the left and long-run aggregate-supply curve to the right.
b) short-run aggregate-supply curve to the right but does not shift long-run aggregate-supply curve.
c) long-run aggregate-supply curve to the right but does not shift short-run aggregate-supply curve.
d) both short-run and long-run aggregate-supply curve to the right.
Ans: d) both short-run and long-run aggregate-supply curve to the right.
You might also like to view...
Owners of corporations are referred to most frequently as
a. entrepreneurs b. lien holders c. limited partners d. managers e. stockholders
The construction of demand and supply curves assumes that the primary variable influencing decisions to produce and purchase goods is:
A. price. B. expectations. C. preferences. D. incomes.
Refer to the information. Given an increase in input price from $4 to $6, we would expect the aggregate:
Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4. Answer the following question on the basis of this information. A. supply curve to shift to the left. B. supply curve to shift to the right. C. demand curve to shift to the left. D. supply and demand curves to both remain unchanged.
The optimal method of production maximizes cost for a given level of output.
Answer the following statement true (T) or false (F)