Which of the following is NOT an event that causes BOTH the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve to shift?
A) a change in an economy's endowments of the factors of production
B) technological changes
C) a change in an economy's labor supply
D) a temporary change in the price of a key input

Question

Quizplus · Accepted Answer

A temporary change in the price of a key input will only cause a shift in the short-run aggregate supply (SRAS) curve, not the long-run aggregate supply (LRAS) curve. The LRAS curve is determined by the economy's endowments of factors of production and technological progress, while the SRAS curve is affected by temporary changes such as input prices, taxes, and subsidies. Therefore, choice D is not an event that causes both the SRAS and LRAS curves to shift.

Which of the Following Is NOT an Event That Causes