Figure 24-2 -Refer to Figure 24-2. Ceteris paribus, a decrease in the expected price of an important natural resource would be represented by a movement from A) SRAS₁ to SRAS₂. B) SRAS₂ to SRAS₁. C) point A to point B. D) point B to point A.

Question

Quizplus · Accepted Answer

A decrease in the expected price of an important natural resource would lower production costs, leading to an increase in short-run aggregate supply, represented by a rightward shift from SRAS₁ to SRAS₂.

Figure 24-2 -Refer to Figure 24-2. Ceteris Paribus, a Decrease in the Decrease