Which of the following would cause a rightward shift in the aggregate supply curve?
A) Larger-than-expected wage increases.
B) Lower oil prices.
C) Increased investment spending.
D) Greater government regulation.

Question

Quizplus · Accepted Answer

Lower oil prices would decrease the cost of production for firms, resulting in a decrease in input prices and a rightward shift in the aggregate supply curve. A larger-than-expected wage increase would increase the cost of production and shift the AS curve to the left. Increased investment spending and greater government regulation would have little to no effect on the AS curve, as they do not directly impact production costs.

Which of the Following Would Cause a Rightward Shift in the Aggregate