Question

When production costs rise,a.the short-run aggregate supply curve shifts to the right. b.the short-run aggregate supply curve shifts to the left. c.the aggregate demand curve shifts to the right. d.the aggregate demand curve shifts to the left.

Answer 1

Answer:

The Short Run Aggregate Supply Curve Shifts to the Right.

Explanation:

The short run aggregate supply curve shifts to the right because prices increase, and increased prices results in increased supply. However, increased prices drives down demand.