The aggregate supply curve will shift to the left if
A)energy prices fall.
B)technology and productivity increase in the economy.
C)the capital stock of the economy increases.
D)the money wage rate increases.

Question

Quizplus · Accepted Answer

If the money wage rate increases, it will increase the costs of production for firms and lead to a decrease in aggregate supply, shifting the curve to the left.

The Aggregate Supply Curve Will Shift to the Left If