Which of the following would NOT shift a country's short-run aggregate supply curve to the right?
A) lower nominal wages
B) higher productivity
C) lower input costs
D) higher inflation

Question

Quizplus · Accepted Answer

Higher inflation typically leads to higher input costs for businesses, which can reduce the amount of goods and services they are willing to supply at any given price level. This would not shift the short-run aggregate supply (SRAS) curve to the right; instead, it could shift it to the left. Lower nominal wages, higher productivity, and lower input costs all help to reduce production costs, which can increase the quantity of goods and services supplied at any given price level, shifting the SRAS curve to the right.

Which of the Following Would NOT Shift a Country's Short-Run