When factors (other than price level) that affect the quantity of goods and services supplied change:
A)the aggregate-supply curve shifts
B)the aggregate-supply curve is not affected
C)the aggregate supply becomes vertical
D)the aggregate-supply curve becomes horizontal
E)the aggregate-demand curve shifts

Question

Quizplus · Accepted Answer

When factors other than price level, such as changes in technology, input prices, or productivity, affect the quantity of goods and services supplied, the aggregate-supply curve shifts. This is because these factors affect the cost of production and the incentive for firms to produce, which in turn affects the amount of output they are willing and able to supply at each price level.

When Factors (Other Than Price Level) That Affect the Quantity