The short-run aggregate supply curve shifts because of changes in all of the following EXCEPT A) technological progress. B) the capital stock. C) money wage rates. D) the price level.

Question

Quizplus · Accepted Answer

Changes in the price level do not shift the short-run aggregate supply curve; rather, they move along the curve according to the sticky-wage theory, which holds that wages are inflexible in the short run. Technological progress, the capital stock, and money wage rates can all shift the short-run aggregate supply curve, as they affect the productivity of labor and capital.

The Short-Run Aggregate Supply Curve Shifts Because of Changes in All