ECONOMICS
AGGREGATE DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
An increase in the price level in the short run.
|
|
|
Any event that causes exports to decrease that is not due to changes in the price level
|
|
|
Any event that causes consumers to purchase fewer goods and services that is not due to changes in the price level
|
|
|
Any event that makes it more expensive or more difficult to produce goods and services
|
|
|
Any event that makes it less expensive or easier to produce goods and services
|
Detailed explanation-1: -One type of event that would shift the short-run aggregate supply curve is an increase in the price of a natural resource such as oil.
Detailed explanation-2: -A higher level of productivity shifts the SRAS curve to the right because with improved productivity, firms can produce a greater quantity of output at every price level.
Detailed explanation-3: -Changes in prices of factors of production shift the short-run aggregate supply curve. In addition, changes in the capital stock, the stock of natural resources, and the level of technology can also cause the short-run aggregate supply curve to shift.
Detailed explanation-4: -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-5: -Answer and Explanation: An increase in production costs is most likely to shift the (a) short-run aggregate supply curve up (to the left).