Which of the following shifts the aggregate supply curve rightward?
i. the money wage rate rises
ii. potential GDP increases
iii. government expenditure on goods and services increases
A) i only.
B) ii only.
C) iii only.
D) ii and iii.
E) i, ii, and iii

Question

Quizplus · Accepted Answer

An increase in potential GDP shifts the aggregate supply curve rightward, as it indicates an increase in the economy's capacity to produce goods and services.

Which of the Following Shifts the Aggregate Supply Curve Rightward