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25 April, 13:56

Answer the question based on the accompanying list of items related to aggregate demand or aggregate supply. Changes in which combination of factors best explain why the aggregate supply curve would shift?

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  1. 25 April, 14:09
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    The aggregate supply curve would shift because of

    i) Business Taxes

    ii) Domestic Resource Availability

    Explanation:

    The demand in the total quantity of the goods and services is represented with the aggregate demand curve at various price levels. The aggregate demand curve shows that the price level of the product is inversely related to the quantity of real GDP purchased.

    The total amount of goods produced and supplied at different price levels is represented by the aggregated supply curve. The shift in the aggregate supply curve will happen with the change in productivity. The curve shifts right with the increase in productivity.

    The shift in the aggregate supply curve happens depending on the availability of the goods and services.
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