Which of these would NOT cause a shift in the short-run aggregate supply curve?
A) an increase in resource prices
B) a decrease in the expected rate of inflation
C) a major technological advancement
D) a decrease in real interest rates

Question

Quizplus · Accepted Answer

A decrease in real interest rates primarily affects the aggregate demand curve rather than the short-run aggregate supply curve. It makes borrowing cheaper, encouraging consumption and investment, thus shifting the aggregate demand curve, not the supply curve.

Which of These Would NOT Cause a Shift in the Short-Run