Which of the following changes aggregate supply and shifts the aggregate supply curve?
I. change in the price level
Ii. change in potential GDP
Iii. change in the money wage rate
A)ii and iii
B)i, ii, and iii
C)iii only
D)i only
E)ii only

Question

Quizplus · Accepted Answer

A change in potential GDP and a change in the money wage rate both shift the aggregate supply curve. A change in the price level results in a movement along the curve, not a shift.

Which of the Following Changes Aggregate Supply and Shifts the Aggregate