Understanding Aggregate Supply

What does the aggregate supply curve represent?

• The price level of a single product

• The demand for goods and services in a country

• The total production of goods and services in a country

• The supply of a single product in the market

Which of the following is NOT a factor that can shift the aggregate supply curve?

• Changes in the price of key resources

• Improvements in technology

• Changes in consumer preferences

• Government subsidies

How does an increase in nominal wages affect the aggregate supply curve?

• Shifts the curve to the right

• Shifts the curve to the left

• Does not affect the curve

• Makes the curve steeper

What is the effect of a significant decrease in corporate taxes on aggregate supply?

• Shifts the curve to the left

• Shifts the curve to the right

• Does not affect the curve

• Makes the curve flatter

If businesses expect higher inflation in the future, what is the likely impact on aggregate supply?

• Aggregate supply will remain unchanged

• Aggregate supply will become more elastic

• Aggregate supply will increase

• Aggregate supply will decrease