Exhibit 8-4

-Refer to Exhibit 8-4. Which of the following could not have caused a shift in aggregate supply from SRAS? to SRAS??
A) an increase in productivity
B) a beneficial supply shock
C) a decrease in the price of a nonlabor input
D) a change in the price level
E) a decrease in wage rates

Question

Exhibit 8-4
 
-Refer to Exhibit 8-4. Which of the following could not have caused a shift in aggregate supply from SRAS? to SRAS??
A) an increase in productivity 
B) a beneficial supply shock 
C) a decrease in the price of a nonlabor input 
D) a change in the price level 
E) a decrease in wage rates

Quizplus · Accepted Answer

A change in the price level would cause a movement along the SRAS curve, not a shift in the SRAS curve itself. The other options listed would cause a shift in the SRAS curve, either to the right (increase in productivity, beneficial supply shock, decrease in the price of a nonlabor input) or to the left (decrease in wage rates), indicating a change in the overall level of supply in the economy at any given price level.

Exhibit 8-4 -Refer to Exhibit 8-4. Which of the Following Could Not