A change in _____________results in a movement along the short -run aggregate supply curve but does not shift the short-run aggregate supply curve.
A) the quantity of capital
B) technology
C) the price level
D) the money wage rate

Question

Quizplus · Accepted Answer

A change in the price level (inflation or deflation) leads to a movement along the short-run aggregate supply curve. It does not shift the curve itself, as short-run aggregate supply is determined by inputs like labor and capital, which are fixed in the short run. Changes in the price level affect the profitability of businesses and their willingness to supply output in the short run.

A Change in _____________Results in a Movement Along the Short