Figure 15-2

-Refer to Figure 15-2.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

Figure 15-2
 
-Refer to Figure 15-2.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.

Quizplus · Accepted Answer

A decrease in the expected price of an important natural resource would increase the short-run aggregate supply (SRAS), shifting the curve from SRAS₁ to SRAS₂.

Figure 15-2 -Refer to Figure 15-2.Ceteris Paribus,a Decrease in the Expected Price