Which one of the following will not shift the aggregate supply curve to the left?
A) Higher price of oil.
B) Lower productivity of labour.
C) Higher Minimum Wage.
D) Higher price-level.

Question

Quizplus · Accepted Answer

The aggregate supply curve represents the total quantity of goods and services that producers are willing to supply at a given price level. A higher price level (D) affects the quantity of goods and services supplied but does not shift the aggregate supply curve itself; it moves along the curve. In contrast, factors like higher oil prices (A), lower labor productivity (B), and a higher minimum wage (C) can increase production costs, thereby shifting the aggregate supply curve to the left as they represent changes in the conditions of production, not in the price level.

Which One of the Following Will Not Shift the Aggregate