Which one of the following will cause an upward (leftward) shift in aggregate supply?
A) The marginal tax rates fall.
B) The level of government spending increases.
C) The overall level of labour productivity falls.
D) The level of private investment spending rises.

Question

Quizplus · Accepted Answer

A fall in labor productivity increases production costs, reducing aggregate supply and causing a leftward shift.

Which One of the Following Will Cause an Upward (Leftward)