ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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changes in the price level
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an innovation in technology
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supply side shocks from trading partners
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investments in infrastructure
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Detailed explanation-1: -These aggregate supply shifters include Changes in Resource Prices, Changes in Resource Productivity, Business Taxes and Subsidies, and Government Regulations.
Detailed explanation-2: -What Shifts Aggregate Supply? Shifts in the short run aggregate supply curve are caused by changes in inflationary expectations; changes in worker force and capital stock availability; changes in government action (not the same as government expenditure); changes in productivity; and supply shocks.
Detailed explanation-3: -A change in price will create a movement along the supply curve, known as a change in quantity supplied, but will not cause a shift in the supply curve.
Detailed explanation-4: -Lower production costs will increase the aggregate supply in the economy. The aggregate supply curve will shift to the right.