Which of the following would not shift the aggregate supply curve?
A) An increase in labor productivity.
B) A decline in the price of imported oil.
C) A decline in business taxes.
D) An increase in the price level.

Question

Quizplus · Accepted Answer

A shift in the aggregate supply curve is caused by changes in factors such as labor productivity, input costs, and government policies. An increase in the price level would cause movement along the aggregate supply curve, but it would not shift the curve itself.

Which of the Following Would Not Shift the Aggregate Supply