A rightward shift in the aggregate supply curve with no change in the aggregate demand curve signals an economic expansion.

Question

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A rightward shift in the aggregate supply curve means that there has been an increase in the quantity of goods and services that firms are willing to supply at any given price level. This often happens due to improvements in technology, lower input costs, or other factors that increase productivity. An expansion in supply leads to lower prices, higher output, and higher employment, which are all hallmarks of an economic expansion. On the other hand, if there is no change in aggregate demand, this means that consumers and investors are spending the same amount as before, and the increase in supply is being absorbed by the market without any additional stimulus. Therefore, a rightward shift in aggregate supply with no change in aggregate demand is a clear sign of an economic expansion.

A Rightward Shift in the Aggregate Supply Curve with No