A rightward shift in the aggregate supply curve is best explained by an increase in
A) business taxes.
B) productivity.
C) nominal wages.
D) the price of imported resources.

Question

Quizplus · Accepted Answer

An increase in productivity would lead to a decrease in production costs, thereby increasing the quantity of goods and services supplied at each price level, shifting the aggregate supply curve to the right.

A Rightward Shift in the Aggregate Supply Curve Is Best