When short-run aggregate supply increases, it means that the short-run aggregate supply curve shifts to the _____ and the quantity of aggregate output that producers are willing to supply _____.
A) right; decreases
B) right; increases
C) left; decreases
D) left; increases

Question

Quizplus · Accepted Answer

When the short-run aggregate supply increases, it means that at any given price level, producers are willing to supply a greater quantity of goods and services. This leads to a rightward shift in the short-run aggregate supply curve. Therefore, the correct choice is B, which states that the curve shifts to the right and the quantity of aggregate output that producers are willing to supply increases.

When Short-Run Aggregate Supply Increases, It Means That the Short-Run