Which of the following would not shift the aggregate supply curve?
A)an increase in labour productivity
B)a decline in the price of imported oil
C)a decline in business taxes
D)an increase in the price level

Question

Quizplus · Accepted Answer

An increase in the price level would cause a movement along the aggregate supply curve, but it would not shift the curve itself. The other options would shift the aggregate supply curve by changing the cost of production for firms and their willingness to produce at different price levels.

Which of the Following Would Not Shift the Aggregate Supply