What would cause prices to fall and output to rise in the short run?
A) short-run aggregate supply shifts right
B) short-run aggregate supply shifts left
C) aggregate demand shifts right
D) aggregate demand shifts left

Question

Quizplus · Accepted Answer

If the short-run aggregate supply (SRAS) shifts to the right, this means that costs of production have decreased, which leads to firms being able to produce more output at a lower cost. This results in lower prices and higher output in the short run.

What Would Cause Prices to Fall and Output to Rise