A decrease in the expected price level will shift the short-run aggregate supply curve.

Name: A decrease in the expected price level will shift the short-run aggregate supply curve.
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Question

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A decrease in the expected price level will lead to a decrease in production costs for firms, which will cause an increase in the quantity of goods and services supplied at every given price level. This shift will cause the short-run aggregate supply curve to shift to the right.

A Decrease in the Expected Price Level Will Shift the Short-Run