Answer to Question #243156 in Macroeconomics for pearl

Question

Which of the following will cause a shift in the short run aggregate supply curve?

(i) An increase in the full employment quantity of labour.

(ii) An increase in GDP.

(iii) A decrease in money wage.

(iv) A change in personal income.

Group of answer choices

Only ii and iv.

i, ii, iii and iv.

Only i and iii.

Only i, ii and iii.

Answer 1

Only i, ii and iii

The short-run aggregate supply shifts in relation to changes in price level and production. When the short run aggregate supply curve shifts to the right there is  a decrease in wages, an increase in the full employment quantity of labour and an increases in GDP.