The following list contains items that are related to aggregate demand and/or aggregate supply.
1) Government Spending
2) Consumer Expectations
3) Degree of Excess capacity
4) Personal Income Tax Rates
5) Productivity
6) National Income Abroad
7) Business Taxes
8) Domestic Resource Availability
9) Price of Imported Products
10) Profit Expectations on Investments
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Refer to the above list. Changes in which of the above two factors would most likely cause a change in aggregate supply?
A) 1 and 5
B) 3 and 10
C) 5 and 7
D) 8 and 9

Question

Quizplus · Accepted Answer

Productivity (5) and Business Taxes (7) directly affect the costs of production and the ability of firms to supply goods and services, thus influencing aggregate supply.

The Following List Contains Items That Are Related to Aggregate