The figure below shows the aggregate demand and supply curves for the U.S.A rightward shift of the aggregate supply curve from AS to AS' would be caused by:

A)an increase in resource prices,improved technology,or an extension of patent protection.
B)a decrease in resource prices,improved technology,or an extension of patent protection.
C)a decrease in resource prices,improved technology,or a shortening of patent protection.
D)an appreciation of the dollar,higher inflation in Europe,or a decrease in resource prices.
E)a depreciation of the dollar,higher inflation in Asia,or improved technology.

Question

The figure below shows the aggregate demand and supply curves for the U.S.A rightward shift of the aggregate supply curve from AS to AS' would be caused by:

A)an increase in resource prices,improved technology,or an extension of patent protection. 
B)a decrease in resource prices,improved technology,or an extension of patent protection. 
C)a decrease in resource prices,improved technology,or a shortening of patent protection. 
D)an appreciation of the dollar,higher inflation in Europe,or a decrease in resource prices. 
E)a depreciation of the dollar,higher inflation in Asia,or improved technology.

Quizplus · Accepted Answer

A rightward shift of the aggregate supply curve indicates an increase in the quantity of goods and services supplied at each price level. This could be caused by factors such as a decrease in resource prices, improved technology, or an extension of patent protection. Therefore, the best choice is B, which includes all three of these possible causes for the shift.

The Figure Below Shows the Aggregate Demand and Supply Curves