What will cause the AS curve to shift?
A)A rise in money wages.
B)A change in the capital stock.
C)The introduction of technological change.
D)A rise in money wages,a change in the capital stock and the introduction of technological change.

Question

Quizplus · Accepted Answer

Inflation, which is caused by an increase in money wages, will shift the AS curve leftward or upward. An increase in a country's capital stock will improve the efficiency of production and cause the AS curve to move rightward, while the introduction of technological change (innovation, new techniques, etc.) will improve productivity and shift the AS curve rightward as well. Therefore, a combination of all three factors mentioned in option D (a rise in money wages, a change in the capital stock, and the introduction of technological change) can potentially shift the AS curve in any direction depending on the relative strengths and directions of these factors.

What Will Cause the AS Curve to Shift