(Figure: Determining SRAS Shifts 2) 
Consider the shift in aggregate supply shown in the accompanying figure. Which of these might cause this change in short-run aggregate supply?
A) Unions successfully negotiate higher wages.
B) Businesses are increasingly optimistic about the future.
C) Incomes of consumers decrease.
D) Taxes on businesses increase.
Correct Answer:
Verified
Q143: (Figure: Interpreting Aggregate Shifts) The graph shows
Q144: If an economy is on the vertical
Q145: (Figure: Understanding Aggregate Graphs) Q146: An increase in investment will cause the Q147: Which event would reduce short-run aggregate supply Q149: Suppose a booming stock market encourages consumption Q150: Increased consumer confidence will shift the aggregate Q151: Policymakers can increase output by enacting policies Q152: The determinants of aggregate demand include the Q153: A decrease in foreign income will cause
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents