If inflation is expected to decrease, the AS curve move to the right.

Question

Quizplus · Accepted Answer

The AS (Aggregate Supply) curve moving to the right typically indicates an increase in the total output of an economy, not directly related to expectations of decreasing inflation. Decreasing inflation expectations might affect interest rates and aggregate demand, but the AS curve primarily shifts due to changes in production costs, technology, or factors of production.

If Inflation Is Expected to Decrease, the AS Curve Move