(Figure: Determining SRAS Shifts 3) 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) Subsidies to firms increase.
C) Incomes of consumers decrease.
D) Workers and firms believe that inflation is going to fall.

Question

(Figure: Determining SRAS Shifts 3)  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) Subsidies to firms increase. 
C) Incomes of consumers decrease. 
D) Workers and firms believe that inflation is going to fall.

Quizplus · Accepted Answer

The Answer of (Figure: Determining SRAS Shifts 3)  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) Subsidies to firms increase. 
C) Incomes of consumers decrease. 
D) Workers and firms believe that inflation is going to fall.

(Figure: Determining SRAS Shifts 3) Consider the Shift in Aggregate