Figure 33-5.
-Refer to Figure 33-5. The shift of the short-run aggregate-supply curve from SRAS1 to SRAS2
A) could be caused by an outbreak of war in the Middle East.
B) could be caused by a decrease in the expected price level.
C) causes the economy to experience an increase in the unemployment rate.
D) causes the economy to experience stagflation.

Question

Figure 33-5. 
-Refer to Figure 33-5. The shift of the short-run aggregate-supply curve from SRAS1 to SRAS2
A) could be caused by an outbreak of war in the Middle East. 
B) could be caused by a decrease in the expected price level. 
C) causes the economy to experience an increase in the unemployment rate. 
D) causes the economy to experience stagflation.

Quizplus · Accepted Answer

A shift in the short-run aggregate-supply curve from SRAS1 to SRAS2 could be caused by a decrease in the expected price level, which would reduce production costs and increase output. War in the Middle East or an increase in the unemployment rate would shift the curve to the left, while stagflation would occur if the aggregate-supply curve shifted to the left but economic output remained unchanged.

Figure 33-5. -Refer to Figure 33-5. the Shift of the Short-Run Aggregate-Supply