Changes in short-run aggregate supply can be caused by changes in:
A) wealth.
B) commodity prices.
C) government spending.
D) the price level.

Question

Quizplus · Accepted Answer

Changes in commodity prices can directly affect short-run aggregate supply because they alter the costs of raw materials for businesses, thereby affecting production costs and the quantity of goods and services supplied in the economy.

Changes in Short-Run Aggregate Supply Can Be Caused by Changes