Which of the following would shift aggregate supply to the right?
A)increasing commodity prices
B)an increase in money supply
C)an increase in wages
D)the discovery of a new, cheaper form of energy

Question

Quizplus · Accepted Answer

The discovery of a new, cheaper form of energy will shift aggregate supply to the right because it will reduce production costs, allowing producers to supply more output at a given price level. Increased commodity prices and wages, as well as an increase in money supply, are likely to shift aggregate supply to the left, as they would increase production costs and reduce the incentive to supply output at a given price level.

Which of the Following Would Shift Aggregate Supply to the Right