-If the costs of production increase,there is
A)a decrease in aggregate supply and the AS curve shifts rightward.
B)a decrease in aggregate supply and the AS curve shifts leftward.
C)an increase in the quantity of real GDP supplied and a movement up along the AS curve.
D)a decrease in the quantity of real GDP supplied and a movement down along the AS curve.
E)an increase in aggregate supply and the AS curve shifts rightward.

Question

-If the costs of production increase,there is
A)a decrease in aggregate supply and the AS curve shifts rightward. 
B)a decrease in aggregate supply and the AS curve shifts leftward. 
C)an increase in the quantity of real GDP supplied and a movement up along the AS curve. 
D)a decrease in the quantity of real GDP supplied and a movement down along the AS curve. 
E)an increase in aggregate supply and the AS curve shifts rightward.

Quizplus · Accepted Answer

When production costs increase, it becomes more expensive to produce goods and services, leading to a decrease in aggregate supply and a leftward shift of the AS curve.

-If the Costs of Production Increase,there Is