An increase in the "Z" factors will decrease the equilibrium price level and decrease aggregate output, ceteris paribus.

Name: An increase in the "Z" factors will decrease the equilibrium price level and decrease aggregate output, ceteris paribus.
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Question

Quizplus · Accepted Answer

An increase in the "Z" factors, which represent all factors that affect aggregate supply except for price level, will shift the aggregate supply curve to the right, causing a decrease in the equilibrium price level and a decrease in aggregate output.

An Increase in the "Z" Factors Will Decrease the Equilibrium