Which of the following events would cause a shift in the aggregate supply curve in the short run?
A) An increase in the money supply.
B) A decrease in government spending.
C) A decrease in consumer confidence.
D) An increase in taxes.
E) An increase in the markup.

Question

Quizplus · Accepted Answer

An increase in the markup would cause an increase in the overall cost of production, causing a leftward shift in the short-run aggregate supply curve. The other options do not directly affect the aggregate supply curve in the short run. An increase in the money supply could potentially lead to inflation in the long run, but it would not have an immediate effect on the aggregate supply curve. A decrease in government spending, increase in taxes, and decrease in consumer confidence could all affect aggregate demand, but they would not directly shift the aggregate supply curve in the short run.

Which of the Following Events Would Cause a Shift in the Aggregate