A change in aggregate supply would be caused by a change in:
A)the price level.
B)aggregate demand.
C)an aggregate supply determinant.
D)the quantity of real output supplied.

Question

Quizplus · Accepted Answer

A change in aggregate supply is caused by a shift in the factors that determine the quantity of goods and services supplied. These determinants include resource prices, technology, taxes and subsidies, and productivity. Therefore, a change in aggregate supply would be caused by a change in an aggregate supply determinant (choice C). The price level (choice A) and aggregate demand (choice B) are factors that affect the overall level of economic activity but do not directly impact aggregate supply. The quantity of real output supplied (choice D) is the result of aggregate supply and not a cause of it.

A Change in Aggregate Supply Would Be Caused by a Change