The Main Effect of an Increase in the Capital Stock

question 159

Multiple Choice

The main effect of an increase in the capital stock is a(n)

• A)rightward shift of the long-run aggregate supply curve
• B)rightward shift of the aggregate demand curve
• C)leftward shift of the long-run aggregate supply curve
• D)leftward shift of the aggregate demand curve
• E)increase in price and output levels

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Definitions:

Buyers

Individuals or entities that purchase goods or services.

Income

The total amount of money or value received by an individual or entity, typically over a specific period, from various sources such as wages, investments, or sales.

Decrease in Demand

A reduction in consumers' willingness or ability to buy a product at any given price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level in a given period.