In General,an Increase in Productive Capacity

question 15

Multiple Choice

In general,an increase in productive capacity

• A) leaves the aggregate demand and supply curves unchanged.
• B) causes the aggregate supply curve to become vertical.
• C) causes the aggregate demand curve to become horizontal.
• D) shifts the aggregate demand curve to the left and pushes up price levels.
• E) shifts the aggregate supply curve to the right and increases real output.

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