Which of the following could cause a movement along the economy's AS curve?
A)a change in labour productivity
B)a change in the cost of capital
C)a change in the price level
D)a change in technology
E)a change in the wage rate

Question

Quizplus · Accepted Answer

A movement along the AS curve is caused by a change in the price level. This is because the AS curve shows the relationship between the price level and the quantity of real GDP supplied, assuming that other factors that affect GDP, such as technology and labour productivity, are held constant. A change in the price level will cause a movement along the AS curve, as the quantity of real GDP supplied changes in response to the change in price level. The other options listed could shift the AS curve (i.e. a change in labour productivity or technology could increase or decrease the amount of output that can be produced at any given price level), but they would not cause a movement along the curve.

Which of the Following Could Cause a Movement Along the Economy's