Which of the following shifts short-run aggregate supply right?
A)an increase in the minimum wage
B)an increase in immigration from abroad
C)an increase in the price of oil
D)an increase in the actual price level

Question

Quizplus · Accepted Answer

An increase in immigration from abroad will increase the supply of labor in the economy, which will shift short-run aggregate supply to the right. This is because more workers mean more production capacity and lower labor costs, which can lead to an increase in output and a lower price level. The other choices would shift short-run aggregate supply to the left. A higher minimum wage would increase labor costs and decrease production capacity, while an increase in the price of oil would increase production costs and decrease output. Finally, an increase in the actual price level would not shift short-run aggregate supply because it is a movement along the curve, not a shift of the curve itself.

Which of the Following Shifts Short-Run Aggregate Supply Right