A outward shift of the aggregate supply curve could be caused by
A)higher import prices.
B)lower import prices.
C)energy shortages.
D)rising wage rates.

Question

Quizplus · Accepted Answer

Lower import prices can decrease the cost of production for domestic firms, leading to an increase in the quantity of goods and services supplied at every price level and causing an outward shift of the aggregate supply curve. Higher import prices, energy shortages, and rising wage rates, on the other hand, can increase the cost of production and reduce the quantity of goods and services supplied at every price level, causing an inward shift of the aggregate supply curve.

A Outward Shift of the Aggregate Supply Curve Could Be