Which of the following shifts the short-run aggregate supply curve?
I. changes in the size of the labor force
II. changes in the money wage rate
A) I only
B) II only
C) both I and II
D) neither I nor II

Question

Quizplus · Accepted Answer

Both changes in the size of the labor force and changes in the money wage rate can shift the short-run aggregate supply curve. Changes in the labor force affect the production capacity of the economy, while changes in the money wage rate affect production costs.

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