A change in the price level brings a ________ the aggregate supply curve,NOT a ________ the aggregate supply curve.
A)shift in;movement along
B)vertical displacement of;change in the slope of
C)movement along;shift in
D)change in the slope of;horizontal displacement of
E)shift in;change in the slope of

Question

Quizplus · Accepted Answer

A change in the price level (not in any other variable) causes a movement along the aggregate supply curve. This is because the aggregate supply curve shows the relationship between the price level and the level of real output produced in the economy, while holding all other variables constant. A shift in the aggregate supply curve would require a change in one or more of the other variables that affect the level of real output, such as technological progress, input prices, or the availability of capital.

A Change in the Price Level Brings a ________ the Aggregate