The short-run aggregate supply curve will shift to the:
A) right if commodity prices increase.
B) left if productivity increases.
C) left if nominal wages increase.
D) right if government spending increases.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve shifts to the left if nominal wages increase because higher wages raise firms' production costs, leading to a decrease in the quantity of goods and services supplied at any given price level.

The Short-Run Aggregate Supply Curve Will Shift to The