The aggregate supply curve will shift to the right when the:
A) amount of labour in the society decreases.
B) capital stock of the society shrinks.
C) amount of natural resources in the society gets smaller.
D) amount of labour in the society increases.

Question

Quizplus · Accepted Answer

An increase in the amount of labour in the society will lead to an increase in the aggregate supply, as there will be more production and output of goods and services. Option A is incorrect as a decrease in the amount of labour will decrease the aggregate supply. Option B is also incorrect as a decrease in the capital stock will lead to a decrease in production capacity and the aggregate supply. Option C is incorrect as a decrease in natural resources will lead to a decrease in production and output.

The Aggregate Supply Curve Will Shift to the Right When