A rightward shift in the aggregate supply curve is generally associated with a reduction in resource prices.

Question

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A rightward shift in the aggregate supply curve means that there is an increase in the amount of goods and services that firms are willing and able to supply at each price level. This could be due to a variety of factors such as technological advancements, increases in productivity, or decreased regulations.

If the shift is caused by a decrease in resource prices, it means that firms can produce goods and services at a lower cost, which implies that aggregate supply has increased. Therefore, a rightward shift is generally associated with a reduction in resource prices.

A Rightward Shift in the Aggregate Supply Curve Is Generally