The aggregate supply curve will shift to the right when the:
A) amount of labor in the society decreases.
B) capital stock of the society shrinks.
C) amount of natural resources in the society gets smaller.
D) amount of labor in the society increases.

Question

Quizplus · Accepted Answer

An increase in the amount of labor in the society will shift the aggregate supply curve to the right. This is because with more labor, the economy can produce more output and thus supply more goods and services. A larger labor force also means more investment opportunities and innovation, which can lead to increases in productivity and economic growth.

The Aggregate Supply Curve Will Shift to the Right When