When an Increase in the Economy's Capital Stock Increases Productivity

question 27

Multiple Choice

When an increase in the economy's capital stock increases productivity:

• A)the short-run aggregate-supply curve shifts to the right, and the long-run aggregate-supply curve shifts to the left
• B)the short-run aggregate-supply curve shifts to the left, and the long-run aggregate-supply curve shifts to the right
• C)both short-run and long-run aggregate-supply curves shift to the left
• D)both short-run and long-run aggregate-supply curves shift to the right

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Definitions:

Small Firms

Businesses with a limited number of employees and revenue, often characterized by more personalized customer service and less market control compared to larger companies.

Ergonomics Regulations

Rules and guidelines designed to create safe and comfortable working environments by studying human interaction with elements in the system.

Social Regulation

Policies implemented by the government to protect public interests, including health, safety, and the environment, often affecting how businesses operate.

Repetitive Activities

Tasks or processes that are performed over and over again in a consistent manner, often within a production or manufacturing environment.