Which of the following would shift the short-run aggregate supply curve of an industry upward but not change its long-run aggregate supply curve?
A)A negative supply shock
B)A positive supply shock
C)A decrease in the price level
D)An increase in the price level
E)A fall in the transport cost of a raw material required for production

Question

Which of the following would shift the short-run aggregate supply curve of an industry upward but not change its long-run aggregate supply curve?
A)A negative supply shock​
B)A positive supply shock
C)A decrease in the price level
D)An increase in the price level
E)A fall in the transport cost of a raw material required for production

Quizplus · Accepted Answer

A negative supply shock, such as a sudden increase in the cost of production inputs, can shift the short-run aggregate supply curve upward, indicating a decrease in supply at each price level. However, it does not affect the long-run aggregate supply curve, which is determined by factors like technology and resources.

Which of the Following Would Shift the Short-Run Aggregate Supply