Question

Major sources of shifts in the AS curve include changes in:

Group of answer choices

a. Business Expectations, inventories, contracts

a. Interest rates

b. World economy

c. All of the above

d. Government policy

Answer 1

Option A: business expectation, inventories and contract is correct

As as curve is aggregate supply when expectation change about the price, taste and preference, government policies, economic changes As curve shifts

When inventories changes supply changes

Contract can be of any thing like labour contract

Other option like government policy, world economy does shift supply curve but not a major changes

Interest rate don't shift as curve