A decrease in input prices will shift
A)aggregate demand to the right.
B)aggregate demand to the left.
C)aggregate supply to the right.
D)aggregate supply to the left.

Question

Quizplus · Accepted Answer

A decrease in input prices will lower firms' production costs, allowing them to produce more output at every price level. This will lead to an increase in aggregate supply, shifting the AS curve to the right.

A Decrease in Input Prices Will Shift