The short-run aggregate supply curve may shift to the right if:
A) productivity increases.
B) nominal wages increase.
C) personal income taxes decrease.
D) commodity prices rise.

Question

Quizplus · Accepted Answer

Productivity increases can lead to an increase in the short-run aggregate supply, as firms are able to produce more output with the same level of inputs, thus shifting the curve to the right. B, C, and D are unlikely to cause a rightward shift in the short-run aggregate supply curve.

The Short-Run Aggregate Supply Curve May Shift to the Right