Which of the following will not shift the short-run aggregate supply curve?
A) A change in the price level
B) Technological change
C) A reduction in the price of raw materials
D) A change in the wage rate

Question

Quizplus · Accepted Answer

A change in the price level would not shift the short-run aggregate supply curve because the price level is already represented on the vertical axis of the aggregate supply curve. A change in the price level would simply result in a movement along the existing short-run aggregate supply curve. Technological change, a reduction in the price of raw materials, and a change in the wage rate would all shift the short-run aggregate supply curve.

Which of the Following Will Not Shift the Short-Run Aggregate