Other things being equal,the economy's AS curve will shift downward if there is
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 reduces production costs, allowing firms to supply more at each price level, thus shifting the AS curve downward.

Other Things Being Equal,the Economy's AS Curve Will Shift Downward