Which of the following will shift the Keynesian short-run aggregate supply curve downward and to the right?
A) a rise in the price level
B) a fall in the price level
C) a decrease in input costs
D) an increase in input costs

Question

Quizplus · Accepted Answer

A decrease in input costs will make production more profitable at every price level, shifting the Keynesian short-run aggregate supply curve downward and to the right, as firms are willing to supply more at each price level.

Which of the Following Will Shift the Keynesian Short-Run Aggregate