Title: Understanding Factors Affecting the Aggregate Supply CurveQuestion:Which of the following does not shift the aggregate supply curve?Options:- Changes to technology- Increases in government spending- Decrease to the average nominal wage rate- Additions to capital stockExplanation:This question aims to test the understanding of factors that influence the aggregate supply curve in an economy. The aggregate supply curve represents the total supply of goods and services that firms in an economy are willing to sell at a given price level.1. **Changes to technology**: Improvements in technology can increase productivity, enabling more output from the same amount of input, thus shifting the aggregate supply curve.2. **Increases in government spending**: This primarily affects aggregate demand rather than aggregate supply, as it influences the total demand for goods and services in the economy.3. **Decrease to the average nominal wage rate**: A reduction in wage rates can lower production costs for firms, potentially increasing supply and shifting the aggregate supply curve.4. **Additions to capital stock**: Increasing capital stock, such as machinery and infrastructure, enhances production capabilities, thereby shifting the aggregate supply curve.Answer Key:The correct answer to the question is "Increases in government spending," as it is primarily a factor that affects aggregate demand rather than the supply side directly.

Aggregate demand and aggregate supply are the two most important variables in macroeconomy.…

Answered: Which of the following does not shift…

Which of the following does not shift the aggregate supply curve? Changes to technology Increases in government spending Decrease to the average nominal wage rate Additions to capital stock

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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