Question:

Which of the following will most likely cause the short-run aggregate supply (SRAS) curve to shift to  the right? 
A. Increase in business taxes 
B. Increase in the supply of human capital 
C. Increase in nominal wages 

Answer = B 
An increase in the supply of human capital will increase the resource base and cause the SRAS to  shift to the right. 

CFA Level I 
"Aggregate Output, Prices, and Economic Growth," Paul R. Kutasovic and Richard G. Fritz 
Sections 3.3.2, 3.3.3 

 

 

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