Figure 24-1

-In Figure 24.1 above, at point 2, the shift of the aggregate supply curve from AS₁ to AS₂ is a result of ________ wages that ________ production cost.
A)increasing; increase
B)increasing; reduce
C)decreasing; decrease
D)decreasing; increase

Question

Figure 24-1 
 
-In Figure 24.1 above, at point 2, the shift of the aggregate supply curve from AS₁ to AS₂ is a result of ________ wages that ________ production cost.
A)increasing; increase 
B)increasing; reduce 
C)decreasing; decrease 
D)decreasing; increase

Quizplus · Accepted Answer

Increasing wages increase production cost, which shifts the aggregate supply curve to the left.

Figure 24-1 -In Figure 24.1 Above, at Point 2, the Shift of Point