A decrease in the costs of resources or inputs of production would shift the:
A)short-run aggregate supply curve rightward.
B)short-run aggregate supply curve leftward.
C)long-run aggregate supply curve rightward.
D)long-run aggregate supply curve leftward.

Question

Quizplus · Accepted Answer

A decrease in costs of resources or inputs of production would lead to a decrease in production costs, which means that firms can produce more output at each price level in the short-run. As a result, the short-run aggregate supply curve shifts rightward.

A Decrease in the Costs of Resources or Inputs of Production