The short-run aggregate supply curve would shift and the long-run aggregate supply curve would remain fixed if
A) there was a temporary shock to aggregate demand.
B) there was a temporary shock that influenced the supply side.
C) there was a permanent increase in aggregate demand along with a permanent decrease in aggregate supply.
D) there was a permanent increase in aggregate demand.

Question

Quizplus · Accepted Answer

The short-run aggregate supply (SRAS) curve shifts in response to temporary shocks that influence the supply side, such as changes in production costs or temporary supply disruptions. These shocks do not affect the long-run aggregate supply (LRAS) curve, which is determined by factors like technology, capital, and labor, and remains fixed in the face of temporary changes.

The Short-Run Aggregate Supply Curve Would Shift and the Long-Run