Aggregate supply is determined in part by:
A) demand.
B) the prices of inputs.
C) consumer expectations.
D) consumer confidence.
E) a change in interest rates.

Question

Quizplus · Accepted Answer

Aggregate supply is influenced by the prices of inputs because the cost of production depends on the prices of raw materials, labor, and other inputs. Lower input prices can lead to an increase in supply, while higher input prices can decrease supply.

Aggregate Supply Is Determined in Part By