Which of the following will not shift the short-run aggregate supply curve?
A) A change in technology
B) A change in price expectations
C) A change in wage rates
D) A change in the domestic price level
E) A change in raw material supplies

Question

Quizplus · Accepted Answer

Short-run aggregate supply (SRAS) curve depicts the relationship between the price level and the quantity of output produced by firms in the short-run. The shift in SRAS curve occurs due to changes in the factors that affect the production process of goods and services. Changes in technology, wage rates, raw material supplies, and price expectations can affect the SRAS curve. However, a change in the domestic price level, i.e., inflation or deflation, does not shift the SRAS curve but instead causes a movement along the curve. Therefore, option D is the correct answer.

Which of the Following Will Not Shift the Short-Run Aggregate