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In the Modern Keynesian Model the short run aggregate supply curve slopes upward. How could one explain the shape of the upward sloping​ short-run aggregate supply curve by only focusing on the capital​ input?
A) The firm takes workers off the assembly line to increase worker training time
B) Increase maintanance of machines to assure proper working order
C) New machinery can be added
D) Existing machinery can be used longer hours

Respuesta :

sandlee09

Answer:

D) Existing machinery can be used longer hours

Explanation:

According to my research on Modern Keynesian Model, I can say that based on the information provided within the question we can explain this by stating that the existing machinery is currently being used for longer hours. This would cause the an upward sloping curve because the same amount is being reached in a shorter time frame.

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