Figure 24-1
-In Figure 24.1 above,at point 2,the shift of the aggregate supply curve from AS1 to AS2 is a result of ________ wages that ________ production cost.
A) increasing; increase
B) increasing; reduce
C) decreasing; decrease
D) decreasing; increase

Question

Figure 24-1 
-In Figure 24.1 above,at point 2,the shift of the aggregate supply curve from AS1 to AS2 is a result of ________ wages that ________ production cost.
A) increasing; increase 
B) increasing; reduce 
C) decreasing; decrease 
D) decreasing; increase

Quizplus · Accepted Answer

Increasing wages increase production cost, which shifts the aggregate supply curve to the left.

Figure 24-1 -In Figure 24.1 Above,at Point 2,the Shift of the Aggregate