Other things being equal, the AS curve will shift downward if there is:
A)a decrease in labour productivity.
B)a decrease in the price level.
C)a decrease in the cost of capital inputs.
D)an increase in the wage rate.
E)an increase in the price level.

Question

Quizplus · Accepted Answer

A decrease in the cost of capital inputs reduces production costs, allowing firms to supply more at each price level, shifting the AS curve downward.

Other Things Being Equal, the AS Curve Will Shift Downward