Which of the following changes aggregate supply and shifts the AS curve?
I. a change in the price of a major resource
Ii. increases in the amount of capital
Iii. a change in the money income of consumers
A)i only
B)i and ii
C)iii only
D)ii only
E)i, ii, and iii

Question

Quizplus · Accepted Answer

A change in the price of a major resource and increases in the amount of capital both affect aggregate supply. A change in the price of a major resource affects production costs, while increases in capital enhance production capacity. A change in the money income of consumers affects aggregate demand, not supply.

Which of the Following Changes Aggregate Supply and Shifts the AS Curve