A rightward shift in the economy's AS curve implies that
A)at any given price level, a lower level of output will be supplied.
B)there is a demand shock.
C)there is a decrease in aggregate supply.
D)the same output will be produced, but only at a higher price level.
E)at any given price level, a higher level of output will be supplied.

Question

Quizplus · Accepted Answer

A rightward shift in the AS curve indicates an increase in aggregate supply, meaning that at any given price level, a higher level of output will be supplied. This could be due to various factors, such as an increase in productivity, a decrease in input costs, or improvements in technology.

A Rightward Shift in the Economy's AS Curve Implies That