Shifts in the aggregate supply curve are caused by changes in:
A)consumption spending.
B)the quantity of real output demanded.
C)the quantity of real output supplied.
D)one or more of the determinants of aggregate supply.

Question

Quizplus · Accepted Answer

Shifts in the aggregate supply curve are caused by changes in the determinants of aggregate supply, which include factors such as changes in technology, changes in input prices, changes in the number of suppliers, changes in government policies, and changes in the expectations of businesses and consumers. Consumption spending and real output demanded do not directly affect aggregate supply, and the quantity of real output supplied is determined by the intersection of the aggregate supply and demand curves.

Shifts in the Aggregate Supply Curve Are Caused by Changes