Everything else remaining the same, the short-run aggregate supply curve shifts rightward if
A)the money wage rate increases.
B)aggregate demand increases.
C)the full-employment quantity of labour increases.
D)factor prices increase.
E)the quantity of capital decreases.

Question

Quizplus · Accepted Answer

An increase in the full-employment quantity of labor means that there are more workers available to produce goods and services at every price level. This leads to lower production costs and an increase in the short-run aggregate supply curve.

Everything Else Remaining the Same, the Short-Run Aggregate Supply Curve