Which of the following would cause a rightward shift in the aggregate supply curve?
A) larger-than-expected wage increases
B) lower oil prices
C) increased investment spending
D) greater government regulation

Question

Quizplus · Accepted Answer

Lower oil prices would decrease production costs for firms, leading to an increase in aggregate supply and a rightward shift in the aggregate supply curve. A larger-than-expected wage increase would increase production costs for firms, leading to a decrease in aggregate supply and a leftward shift in the aggregate supply curve. Increased investment spending and greater government regulation would not necessarily cause a shift in the aggregate supply curve.

Which of the Following Would Cause a Rightward Shift in the Aggregate