Germany's manufacturing base has seen an increase in productivity and exports over the past decade. A rightward shift in the aggregate supply curve in this country is most likely due to:
A)A change in price levels
B)An increase in foreign investments
C)A change in government spending
D)A change in imports

Question

Quizplus · Accepted Answer

A rightward shift in the aggregate supply curve in this country is most likely due to a change in price levels.
Key Takeaway: A change in the aggregate supply (AS of all goods is affected by both price levels and quantities of goods produced. A rightward shift in the AS curve is most likely due to a change in price levels.

Germany's Manufacturing Base Has Seen an Increase in Productivity and Exports