In the graph shown, a downward shift in the SAS curve:
A)Raises domestic consumption because domestic producers produce more.
B)Raises the trade deficit because domestic producers are more competitive.
C)Raises domestic production because input prices have fallen.
D)Lowers globalized potential output because domestic producers are more competitive.

Question

In the graph shown, a downward shift in the SAS curve: 
A)Raises domestic consumption because domestic producers produce more. 
B)Raises the trade deficit because domestic producers are more competitive. 
C)Raises domestic production because input prices have fallen. 
D)Lowers globalized potential output because domestic producers are more competitive.

Quizplus · Accepted Answer

The Answer of In the graph shown, a downward shift in the SAS curve: 
A)Raises domestic consumption because domestic producers produce more. 
B)Raises the trade deficit because domestic producers are more competitive. 
C)Raises domestic production because input prices have fallen. 
D)Lowers globalized potential output because domestic producers are more competitive.

In the Graph Shown, a Downward Shift in the SAS