Which of the following decreases aggregate supply?
A)discoveries of new raw materials
B)an increase in competition
C)an increase in training and education
D)a decrease in labor supply

Question

Quizplus · Accepted Answer

A decrease in labor supply will lead to a decrease in aggregate supply, as it restricts the ability of businesses to produce goods and services. The other options will either increase aggregate supply (discovery of new raw materials) or have no significant effect on it (increase in competition, increase in training and education).

Which of the Following Decreases Aggregate Supply