The following list of items are related to aggregate demand and/or aggregate supply.Entrepreneurial ability Consumer expectations
Degree of excess capacity
Personal income tax rates
Productivity
National income abroad
Business taxes
Domestic resource availability
Business taxes
Domestic resource availability
Prices of imported products
Profit expectations on investments
Refer to the above list.Changes in which combination of factors best explain why the aggregate supply curve would shift?
A)1 and 2
B)2 and 10
C)3 and 6
D)7 and 8

Question

Quizplus · Accepted Answer

Domestic resource availability and business taxes directly affect the costs of production and the ability to supply goods and services, thus shifting the aggregate supply curve.

The Following List of Items Are Related to Aggregate Demand