A fall in the prices of inputs will shift the aggregate:
A) Demand curve leftward
B) Demand curve rightward
C) Supply curve rightward
D) Supply curve leftward

Question

Quizplus · Accepted Answer

A fall in input prices will decrease the cost of production, allowing producers to supply more goods and services at any given price level. This will shift the aggregate supply curve to the right, resulting in an increase in output and a decrease in prices.

A Fall in the Prices of Inputs Will Shift the Aggregate