Question

The price level increases. The short-run aggregate supply curve will Choose one: A. shift to the right. B. shift to the left. C. remain unchanged.

Answer 1

Option C, remain unchanged, is the right answer.

Step-by-step explanation:

Option C is correct because the increase in the price level will result in the movement along with the given supply curve but in the question, option A says shifts to the right and in option B it says the shift to the left. Therefore these options are wrong. However, the supply curve remains the same because due to an increase in the price level the supply curve does not shift. Therefore option C will be the right option.