Which of the following is most likely to cause the aggregate supply curve to shift to the right?
A)An increase in the money supply.
B)A one-time tax rebate.
C)A decrease in marginal tax rates.
D)A decrease in international trade.

Question

Quizplus · Accepted Answer

A decrease in marginal tax rates would decrease the cost of production for firms, leading to an increase in aggregate supply and a shift of the AS curve to the right. An increase in the money supply would lead to inflation and a leftward shift of the AS curve. A one-time tax rebate may stimulate consumer spending but is not likely to have a significant impact on the AS curve. A decrease in international trade could potentially decrease aggregate demand and shift the AD curve to the left, but would not directly affect the AS curve.

Which of the Following Is Most Likely to Cause the Aggregate