The short-run aggregate supply curve shifts leftward when the
A) price level increases.
B) general level of technology advances.
C) money wage rate increases.
D) availability of on-the-job training expands to all workers.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve shifts leftward when the cost of production increases, such as when the money wage rate increases. This is because higher wages increase the cost of producing goods and services, leading to a decrease in the quantity supplied at each price level.

The Short-Run Aggregate Supply Curve Shifts Leftward When the