Which of the following would shift aggregate supply to the right?
A) increasing commodity prices
B) an increase in money supply
C) an increase in wages
D) an increase in the economy's capital stock

Question

Quizplus · Accepted Answer

An increase in the economy's capital stock would result in a rightward shift in aggregate supply as there would be more resources available for production, leading to an increase in output. Increasing commodity prices (A) would shift aggregate supply to the left, as it would increase the cost of production for businesses. An increase in the money supply (B) would shift aggregate demand to the right, not aggregate supply. An increase in wages (C) would also shift aggregate supply to the left, as it would increase the cost of production for businesses.

Which of the Following Would Shift Aggregate Supply to the Right