Which of the following directly shifts the short-run aggregate supply curve?
A) a change in aggregate demand
B) a change in the price level
C) a change in resource prices
D) all of the above

Question

Quizplus · Accepted Answer

A change in resource prices directly affects the cost of production, which in turn shifts the short-run aggregate supply curve. Changes in aggregate demand and price levels affect the aggregate supply indirectly through their impact on demand and inflation expectations, respectively.

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