In which of the following cases would the aggregate supply curve shift to the ri
ID: 1120162 • Letter: I
Question
In which of the following cases would the aggregate supply curve shift to the right?
-American consumers suddenly acquire a greater taste for Japanese products, ceteris paribus
-The stock markets totters on the brink of panic as people attempt to sell a record – breaking volume of securities for whatever they will bring
-The value of the dollar plummeted on international currency markets, causing foreigners to buy more American goods.
-Productivity in many US industries increases because of technological advances
Explanation / Answer
Productivity in many US industries increases because of technological advances will shift the supply curve to the right as it will lead to more production and supply in the economy will increase