Which of the following would not cause a shift in the short-run aggregate supply curve?
A)a major technological advance
B)a decrease in the real interest rate
C)a decrease in the expected rate of inflation
D)an increase in resource prices

Question

Quizplus · Accepted Answer

A decrease in the real interest rate would not cause a shift in the short-run aggregate supply curve because it does not directly affect the cost of production or the availability of resources. A major technological advance and a decrease in the expected rate of inflation would shift the curve to the right, while an increase in resource prices would shift the curve to the left.

Which of the Following Would Not Cause a Shift in the Short-Run