Practice Quiz

Case Interview Prep

Category - Economics

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Germany’s manufacturing base has seen an increase in productivity and exports over the past decade. A rightward shift in the aggregate supply curve in this country is most likely due to:
  1. a change in price levels
  2. an increase in foreign investments
  3. a change in government spending
  4. a change in imports
Explanation
Answer: A - A rightward shift in the aggregate supply curve in this country is most likely due to a change in price levels.

Key Takeaway: A change in the aggregate supply (AS) of all goods is affected by both price levels and quantities of goods produced. A rightward shift in the AS curve is most likely due to a change in price levels.
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