Which of the followings does not shift the short-run aggregate supply curve?
A) supply shocks.
B) persistent positive output gap.
C) changes in expected inflation.
D) an increase in output gap.

Question

Quizplus · Accepted Answer

An increase in output gap does not shift the short-run aggregate supply curve; it affects the position of the economy on the curve but does not shift the curve itself.

Which of the Followings Does Not Shift the Short-Run Aggregate