Which of the following events will shift the Aggregate Supply curve to the left?
A)a fall in interest rates.
B)land costs fall.
C)real wages rise.
D)inflation expectations decrease.

Question

Quizplus · Accepted Answer

A rise in real wages increases production costs for businesses, which can lead to a decrease in the quantity of goods and services supplied at any given price level, shifting the Aggregate Supply curve to the left.

Which of the Following Events Will Shift the Aggregate Supply