1. If there is an increase in investment that increases productivity, then

A) only AD will shift to the right.
B) only SRAS will shift to the right.
C) only LRAS will shift to the right.
D) only AD and SRAS will shift to the right.
E) AD, SRAS, and LRAS will shift to the right.

2. All of the following will shift LRAS to the right EXCEPT

A) an increase in productivity.
B) an increase in the use of technology.
C) an increase in the capital stock.
D) an increase in health and education.
E) all of the above answers will shift LRAS to the right.

3. If the economy is at full employment and an increase in the capital stock occurs, which of the following would most likely happen?

I. an increase in the PL
II. an increase in employment
III. a shift in LRAS to the right
IV. an increase in RGDP

A) I., II., III., and IV.
B) I., II., and IV. only
C) I., III., and IV. only
D) II., III., and IV. only
E) II. and III. only