The aggregate supply curve will shift as a result of a change in
1)the wage rate;
2)the price level;
3)technology.
A)1 only
B)2 only
C)3 only
D)1 and 3
E)2 and 3

Question

Quizplus · Accepted Answer

The wage rate directly affects the cost of production for firms, so a change in this variable will shift the aggregate supply curve. An increase in wage rates will increase production costs and shift the aggregate supply curve to the left, while a decrease in wage rates will decrease production costs and shift the aggregate supply curve to the right.
Technology affects the efficiency of production and can lead to changes in the cost of production. An improvement in technology will lead to lower production costs and shift the aggregate supply curve to the right, while a decrease in technology will lead to higher production costs and shift the aggregate supply curve to the left. The price level does not directly affect the aggregate supply curve, as it is determined by the intersection of the aggregate demand and aggregate supply curves. However, a change in the price level may indirectly affect the aggregate supply curve by affecting consumer and producer behavior.

The Aggregate Supply Curve Will Shift as a Result of a Change