A decrease in the price of resources will cause the aggregate supply curve to
A)shift outward.
B)shift inward.
C)become flatter.
D)become steeper.

Question

Quizplus · Accepted Answer

A decrease in the price of resources will make it cheaper to produce output, causing firms to increase their supply. This will shift the aggregate supply curve outward, representing a larger quantity of goods and services that can now be produced at every given price level.

A Decrease in the Price of Resources Will Cause the Aggregate