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.

---

Definitions:

Long-held Opinions

Beliefs or judgments that an individual has maintained over a significant period.

Induction

The process of formally introducing a new employee to their role, the company culture, and their colleagues.

Generalization

A broad statement or conclusion derived from specific instances or examples, applying to a wider range of situations.

Specific Conclusion

A definitive end or resolution that directly addresses the particular issue or question at hand.