3 Questions
What is the effect of an increase in costs on aggregate supply?
It shifts aggregate supply to the left
How does an increase in costs impact aggregate demand?
It shifts aggregate supply to the left
What effect does an increase in costs have on the economy's overall production?
It decreases the economy's overall production
Test your knowledge of macroeconomics with this quiz question about the impact of cost increase on aggregate supply and demand. Choose the correct option and see how well you understand this concept.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
