Which of the following could cause the economy's AS curve to shift upward in the short run?
A)an increase in the cost of capital
B)a decrease in the cost of capital
C)a decrease in nominal wages
D)a decrease in the price level
E)an improvement in technology

Question

Quizplus · Accepted Answer

An increase in the cost of capital would lead to an increase in firms' costs, causing a decrease in short-run aggregate supply and shifting the AS curve upward.

Which of the Following Could Cause the Economy's AS Curve