The aggregate supply curve will shift to the right when the:
A)amount of labour in the society decreases.
B)capital stock of the society shrinks.
C)amount of natural resources in the society gets smaller.
D)amount of labour in the society increases.
E)price level in the economy rises.

Question

Quizplus · Accepted Answer

An increase in the amount of labor in the society would increase the total output of goods and services, which would shift the aggregate supply curve to the right. The other options would lead to a decrease in the society's productive capacity and shift the aggregate supply curve to the left.

The Aggregate Supply Curve Will Shift to the Right When