An increase in the price level causes the aggregate supply curve to shift to another supply schedule.

Name: An increase in the price level causes the aggregate supply curve to shift to another supply schedule.
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Question

Quizplus · Accepted Answer

An increase in the price level affects the aggregate demand curve, not the aggregate supply curve. The aggregate supply curve shifts due to factors like changes in production costs, technology, or inputs, not because of changes in the price level.

An Increase in the Price Level Causes the Aggregate Supply