Which of the following shifts short-run aggregate supply right?
A)An increase in the minimum wage
B)An increase in immigration from abroad
C)An increase in the price of oil
D)An increase in the actual price level

Question

Quizplus · Accepted Answer

An increase in immigration from abroad would increase the number of workers in the economy, which would shift the short-run aggregate supply curve to the right, as there would be more production capacity. The other choices would shift the short-run aggregate supply curve to the left; an increase in the minimum wage would increase costs for firms and decrease their willingness to produce, an increase in the price of oil would increase costs for firms and decrease their ability to produce, and an increase in the actual price level would lead to an increase in production costs.

Which of the Following Shifts Short-Run Aggregate Supply Right