All of the following shift the short-run aggregate supply curve EXCEPT
A)a change in the price level.
B)a change in the price of oil.
C)a change in the price of raw material.
D)a change in wages as a result of a labor strike.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve represents the relationship between the price level and the quantity of output supplied by firms in the short run, holding all else constant. Therefore, a change in the price level itself does not shift the short-run aggregate supply curve, but rather moves along the curve to a different point. However, changes in the prices of inputs, such as oil and raw materials, and changes in wages due to labor strikes can shift the short-run aggregate supply curve.

All of the Following Shift the Short-Run Aggregate Supply Curve