If the prices of imported resources decrease, then this event would most likely:
A) decrease aggregate supply.
B) increase aggregate supply.
C) increase aggregate demand.
D) decrease aggregate demand.

Question

Quizplus · Accepted Answer

A decrease in the prices of imported resources reduces production costs, which can lead to an increase in aggregate supply as firms are able to produce more at lower costs.

If the Prices of Imported Resources Decrease, Then This Event