All of the following will cause the aggregate supply curve to shift to the right EXCEPT
A) discoveries of raw materials.
B) a reduction in input prices.
C) an increase in marginal tax rates.
D) a reduction in international trade barriers.

Question

Quizplus · Accepted Answer

An increase in marginal tax rates would increase the cost of production and reduce the incentive for firms to produce, shifting the aggregate supply curve to the left. The other options would lead to increased production and a rightward shift of the curve.

All of the Following Will Cause the Aggregate Supply Curve