Increases in the costs of producing each level of output will cause a rightward shift of the short-run aggregate supply curve.

Name: Increases in the costs of producing each level of output will cause a rightward shift of the short-run aggregate supply curve.
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Increases in the costs of production will lead to a decrease in the level of output supplied at any given price level. As a result, there will be a leftward shift in the short-run aggregate supply curve.

Increases in the Costs of Producing Each Level of Output