Which of the following changes does NOT shift the short-run aggregate supply curve?
A) an increase in the price level
B) an increase in technology
C) an increase in the quantity of capital
D) an increase in the money wage rate

Question

Quizplus · Accepted Answer

An increase in the price level affects the aggregate demand rather than the short-run aggregate supply. Changes in technology, the quantity of capital, and the money wage rate directly affect the production costs and capabilities, thus shifting the short-run aggregate supply curve.

Which of the Following Changes Does NOT Shift the Short-Run