Increases in the availability of natural resources will affect the aggregate supply curve such that it
A)shifts inward and becomes flatter.
B)shifts inward.
C)shifts outward.
D)becomes flatter.
E)becomes steeper.

Question

Quizplus · Accepted Answer

An increase in the availability of natural resources will shift the aggregate supply curve to the right or outward. This is because an increase in resources will lower production costs, leading to an increase in output at each price level.

Increases in the Availability of Natural Resources Will Affect the Aggregate