Which of the following shifts the aggregate supply curve rightward?
I.The money wage rate rises.
Ii.Potential GDP increases.
Iii.Government expenditure on goods and services increases.
A)i only
B)ii only
C)iii only
D)ii and iii
E)i,ii,and iii

Question

Quizplus · Accepted Answer

Only potential GDP increases shift the aggregate supply curve rightward. An increase in the money wage rate would shift the aggregate supply curve leftward, while an increase in government expenditure on goods and services may have no effect on the aggregate supply curve.

Which of the Following Shifts the Aggregate Supply Curve Rightward