Lower world coal prices
A) shift both SAS and LAS leftward.
B) shift SAS leftward only.
C) shift both SAS and LAS rightward.
D) shift SAS rightward only.
E) decrease aggregate quantity supplied.

Question

Quizplus · Accepted Answer

Lower world coal prices reduce the cost of production for many goods and services, leading to an increase in the short-run aggregate supply (SAS) as producers are willing to supply more at each price level. This does not necessarily affect the long-run aggregate supply (LAS), which is determined by factors like technology, resources, and labor supply.

Lower World Coal Prices