"Shoe Industry under Pressure Amid Rising Costs" Rising costs have forced about 15 per cent of shoe manufacturers in a major south China industrial centre to shut down or relocate in the past year... [the firms have] identified rising wages as a key factor behind the closures and relocations from Dongguan...The problems in the footwear industry reflect broader issues affecting manufacturers across China's Pearl River Delta..."
Www)ft.com, 2/26/2008
Using an AS/AD framework to describe the events in the story, there would be a

Question

Quizplus · Accepted Answer

A leftward shift in the Short-Run Aggregate Supply (SAS) curve can occur due to rising costs, such as increasing wages, which is mentioned as a key factor for the closures and relocations in the shoe industry. This reflects higher production costs for manufacturers.

"Shoe Industry Under Pressure Amid Rising Costs" Rising Costs Have