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Assignment Score: NaN% Resources Hint Check Answer Question 4 of 13 > The graph shows the aggregate demand (AD) curve and the
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Answer #1

The following diagram shows the shifting of the curves.

LRAS |LRAS ) Price level a a AD Real GDP (Y)

If Human capital of workers increase in an economy, then the long-run aggregate supply (LRAS) curve increase and leads to shift outward. A shift to the right of the LRAS curve will show affect on both equilibrium output and the price level. By the change in the LRAS, the price level will fall and the real GDP will increase.

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