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

Question

Quizplus · Accepted Answer

A decrease in the price of imported resources would lower production costs for firms, allowing them to produce more output at every price level. This leads to an increase in aggregate supply and a rightward shift in the aggregate supply curve.

A Rightward Shift in the Aggregate Supply Curve Might Best