Which of the following shifts the aggregate supply curve rightward?
A) An increase in real GDP.
B) An increase in potential GDP.
C) An increase in the money wage rate.
D) An increase in the money price of oil.
E) An increase in consumers' incomes.

Question

Quizplus · Accepted Answer

An increase in potential GDP shifts the aggregate supply curve rightward because it reflects an increase in the economy's capacity to produce goods and services, not just a change in the price level or current production.

Which of the Following Shifts the Aggregate Supply Curve Rightward