1. Government Spending
2. Consumer Expectations
3. Degree of Excess Capacity
4. Personal Income Tax Rates
5. Productivity
6. National Income Abroad
7. Business Taxes
8. Domestic Resource Availability
9. Prices of Imported Products
10. Proﬁt Expectations on Investments
Answer the question based on the accompanying list of items related to aggregate demand or
aggregate supply. Changes in which combination of factors best explain why the aggregate supply
curve would shift?
A) 1 and 2
B) 2 and 10
C) 3 and 6
D) 7 and 8

Question

1. Government Spending 
2. Consumer Expectations
3. Degree of Excess Capacity
4. Personal Income Tax Rates
5. Productivity
6. National Income Abroad
7. Business Taxes
8. Domestic Resource Availability
9. Prices of Imported Products
10. Proﬁt Expectations on Investments
Answer the question based on the accompanying list of items related to aggregate demand or
aggregate supply. Changes in which combination of factors best explain why the aggregate supply
curve would shift?
A) 1 and 2
B) 2 and 10
C) 3 and 6
D) 7 and 8

Quizplus · Accepted Answer

The aggregate supply curve shifts due to changes in production costs and resource availability, which are directly affected by business taxes (7) and domestic resource availability (8).