Which of the following will NOT shift the short-run aggregate supply function? a

Economics Dec 09, 2020

Which of the following will NOT shift the short-run aggregate supply function?

a. changes in labor costs.

b. changes in the costs of non-labor inputs.

c. changes in the price level.

d. changes in the expected price level.

Expert Solution

The answer is c. changes in the price level.

The change in the price level will cause a movement along the supply curve, so it will NOT shift the supply function. All the other factors make the supply curve shift to the left or to the right.

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