-In the figure above, at point 2, the shift of the aggregate supply curve from AS1 to AS2 is a result of ________ wages that ________ production cost.
A) increasing; increase
B) increasing; reduce
C) decreasing; decrease
D) decreasing; increase

Question

-In the figure above, at point 2, the shift of the aggregate supply curve from AS1 to AS2 is a result of ________ wages that ________ production cost.
A) increasing; increase 
B) increasing; reduce 
C) decreasing; decrease 
D) decreasing; increase

Quizplus · Accepted Answer

The shift of the aggregate supply curve from AS1 to AS2, as described, is due to increasing wages that increase production cost. Higher wages typically lead to higher production costs for businesses, which can shift the aggregate supply curve to the left, indicating a decrease in the total supply of goods and services at every price level.

-In the Figure Above, at Point 2, the Shift of the Aggregate