The short-run aggregate supply curve is most likely to shift down (to the right)if:
A)productivity falls.
B)wages rise.
C)sales taxes increase.
D)input prices fall.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve shifts down (to the right) when the cost of production decreases. A decrease in input prices reduces the cost of production, leading to an increase in aggregate supply.

The Short-Run Aggregate Supply Curve Is Most Likely to Shift