Which of the following will cause an increase in aggregate supply?
A) Decreased competition
B) An increase in the price level
C) An increase in marginal tax rates
D) A decrease in input prices

Question

Quizplus · Accepted Answer

A decrease in input prices will decrease the cost of production, leading to an increase in aggregate supply as firms can produce more output at every price level.

Which of the Following Will Cause an Increase in Aggregate