Exhibit 14-2 Aggregate supply and demand curves

-A shift in the aggregate supply curve in Exhibit 14-2 from AS₁ to AS₂ would be caused by a(n):
A) decrease in input prices.
B) increase in input prices.
C) increase in real GDP.
D) decrease in real output.

Question

Exhibit 14-2 Aggregate supply and demand curves
 
-A shift in the aggregate supply curve in Exhibit 14-2 from AS₁ to AS₂ would be caused by a(n):
A) decrease in input prices. 
B) increase in input prices. 
C) increase in real GDP. 
D) decrease in real output.

Quizplus · Accepted Answer

An increase in input prices would shift the aggregate supply curve to the left, from AS₁ to AS₂.

Exhibit 14-2 Aggregate Supply and Demand Curves