Final answer:
An increase in production costs leads to a leftward shift in the supply curve, making the statement false.
Explanation:.
A student has asked whether an increase in the per unit costs of production within an economy will cause the aggregate supply curve to shift to the right. The answer is False. An increase in the per unit costs of production will cause the aggregate supply curve to shift to the left. When costs go up, firms will supply a smaller quantity at any given price, resulting in a leftward shift in the supply curve.
The statement that an increase in the per unit costs of production within an economy will cause the aggregate supply curve to shift to the right is false. Conversely, an increase in production costs leads to a decrease in supply because firms will be able to supply less quantity at any given price. This results in a leftward shift in the supply curve. On the other hand, an improvement in technology or a reduction in production costs would lead to an increase in supply, represented by a rightward or downward shift in the supply curve.