A change in tastes for U.S. produced goods will
A) shift both the aggregate demand curve and the long-run aggregate supply curve.
B) shift the aggregate demand curve.
C) shift the short-run aggregate supply curve.
D) shift the long-run aggregate supply curve.

Question

Quizplus · Accepted Answer

A change in tastes for U.S. produced goods will only shift the aggregate demand curve. This is because the change in tastes will affect the demand for U.S. goods, which will be reflected in a shift of the aggregate demand curve. The long-run and short-run aggregate supply curves are not directly affected by changes in tastes.

A Change in Tastes for U