A decrease in the per unit cost will shift the aggregate supply curve: a. toward the middle. b....
Question:
A decrease in the per unit cost will shift the aggregate supply curve:
a. toward the middle.
b. leftward.
c. nowhere; it will not shift the curve.
d. downward to the right.
e. rightward.
Aggregate supply curve:
The aggregate supply curve shows that different total goods and services are supplied at different price levels. In the short run, it is a positive slope or upward sloping and in the long run, it is vertical or full employment level of output is produced in an economy.
Answer and Explanation: 1
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Option e. rightward is correct
This option is correct because a decrease in the per-unit cost will shift the aggregate supply curve rightward. It...
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Aggregate Supply and Aggregate Demand (AS-AD) Model
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Chapter 7 / Lesson 3
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Understand the aggregate demand-aggregate supply model and its features. Read more about the curve shifts of this and learn the AD-AS model through an example.
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