An increase in the costs of resources or inputs of productionwould shift the: A)

Question

An increase in the costs of resources or inputs of productionwould shift the: A)long-run aggregate supply curve rightward.B)short-run aggregate supply curve rightward. C)short-run aggregatesupply curve leftward.D)long-run aggregate supply curveleftward. An increase in the costs of resources or inputs of productionwould shift the: A)long-run aggregate supply curve rightward.B)short-run aggregate supply curve rightward. C)short-run aggregatesupply curve leftward.D)long-run aggregate supply curveleftward.

Explanation / Answer

Higher input costs without any compensating increase in labour productivity cause a rise in production costs, leading businesses to produce less and the aggregate supply curve will shift to the left. So your answer is C

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