Which of the following shifts the short-run aggregate supply right?
A)an increase in the minimum wage
B)an increase in immigration from abroad
C)an increase in the price of oil
D)an increase in the actual price level

Question

Quizplus · Accepted Answer

An increase in immigration from abroad will increase the number of available workers, which will lower the cost of labor and shift the short-run aggregate supply curve to the right. An increase in the minimum wage will increase the cost of labor and shift the short-run aggregate supply curve to the left. An increase in the price of oil will increase the cost of production and shift the short-run aggregate supply curve to the left. An increase in the actual price level is not a shift factor for the short-run aggregate supply curve, but a movement along the curve.

Which of the Following Shifts the Short-Run Aggregate Supply Right