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If businesses are optimistic about future sales, the short-run aggregate supply curve will shift leftward. True...

If businesses are optimistic about future sales, the short-run aggregate supply curve will shift leftward.

True

False

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Answer #1

Ans: False

The short run aggregate supply curve refers to the total supply of goods and services that firms plan to in a specified period in an economy. The short run aggregate supply curve shifts to the left when the economy is under inflation causing firms to invest more in inputs of production with lower outputs leading to the higher rates of workers being laid off from their jobs. So if businesses are optimistic about their future sales, the short run aggregate supply curve will shift to rightward and not leftward.

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