ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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II only
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III only
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II and IV
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II, III, and IV
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Detailed explanation-1: -The short run aggregate supply curve is an upward sloping curve that depicts the number of goods and services produced at each price level in the economy. Increasing the price level causes a movement along the short run aggregate supply curve, leading to higher output and higher employment.
Detailed explanation-2: -Answer and Explanation: The answer is A). A temporary increase in input price will make production more expensive in the short run; as a result, firms cut down on production. The short-run aggregate supply curve, therefore, shifts to the left.
Detailed explanation-3: -Which of the following will cause an increase in aggregate demand?-a decrease in the price level, which increases exports.
Detailed explanation-4: -Short-term changes in aggregate supply are impacted most significantly by increases or decreases in demand. Long-term changes in aggregate supply are impacted most significantly by new technology or other changes in an industry.