Respuesta :
The short-run aggregate supply curve will move to the left as wages rise, restoring long-run equilibrium.
Which of the following will result in an increase in short-term aggregate supply?
A decrease in the price of capital, one of the production components, results in a decrease in the cost of production for businesses. As a result, a decrease in production costs results in an increase and rightward shift in the short-run aggregate supply.
Which of the following will most likely result in a rightward shift in the aggregate supply curve?
The aggregate supply curve and labor cost are inversely correlated. As a result, the aggregate supply curve moves to the left as labor costs rise and to the right as labor costs decline.
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