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

Question

Quizplus · Accepted Answer

A decrease in the cost of capital inputs can cause the economy's aggregate supply (AS) curve to shift downward in the short run because it reduces the cost of production for businesses, allowing them to produce more at every price level.

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