Which of the following does not shift the aggregate supply curve to the right?
A) A very large crop of grain
B) A higher average level of education
C) Lower prices of natural resources
D) Freezing weather that destroys the Florida citrus crop
E) Lower OPEC prices

Question

Quizplus · Accepted Answer

Freezing weather that destroys the Florida citrus crop would decrease aggregate supply by reducing the availability of citrus crops, therefore causing a leftward shift in the aggregate supply curve. The other choices would increase aggregate supply by shifting the curve to the right. A) A very large crop of grain would increase aggregate supply as there are more goods to sell B) A higher average level of education would increase productivity and efficiency causing an increase in aggregate supply. C) Lower prices of natural resources would result in a lower cost of production, firms could then produce more at the same cost, not to mention that reduced production costs lead to an increase in the aggregate supply. E) Lower OPEC prices decrease the cost of production of many firms, thereby increasing supply.

Which of the Following Does Not Shift the Aggregate Supply