Lower world coal prices
A) decrease short-run aggregate supply.
B) decrease aggregate quantity demanded.
C) decrease aggregate quantity supplied.
D) increase aggregate quantity supplied.
E) increase short-run aggregate supply.

Question

Quizplus · Accepted Answer

Lower world coal prices reduce the cost of production for many goods and services, leading to an increase in short-run aggregate supply as producers are willing to supply more at every price level.

Lower World Coal Prices