Which of the following does NOT shift the short- run aggregate supply curve?
A) a reduction in the price of a raw material
B) a change in the price level
C) a change in the money wage rate
D) technological progress

Question

Quizplus · Accepted Answer

Changes in the price level do not shift the short-run aggregate supply curve, as it is represented by a vertical line in the short run. Changes in the price level only result in a movement along the existing short-run aggregate supply curve. Reduction in the price of a raw material, changes in the money wage rate, and technological progress all shift the short-run aggregate supply curve.

Which of the Following Does NOT Shift the Short- Run