Other factors held constant, an increase in resource prices will shift the aggregate:
A) demand curve leftward.
B) demand curve rightward.
C) supply curve leftward.
D) supply curve rightward.

Question

Quizplus · Accepted Answer

An increase in resource prices will increase production costs for businesses, reducing their profitability and thus reducing their willingness to supply goods and services. This will lead to a leftward shift in the aggregate supply curve, as shown in the graph below:

![Shift in Aggregate Supply Curve](https://www.economicshelp.org/wp-content/uploads/2012/02/shift-AS.png)

Other Factors Held Constant, an Increase in Resource Prices Will