Which of the following shifts the short-run aggregate supply curve to the right?
A)a decrease in the actual price level
B)an increase in the actual price level
C)a decrease in the expected price level
D)an increase in the expected price level

Question

Quizplus · Accepted Answer

A decrease in the expected price level will shift the short-run aggregate supply curve to the right, as firms will reduce their production costs and increase their output in anticipation of lower prices.

Which of the Following Shifts the Short-Run Aggregate Supply Curve