Rising input prices shift SAS rightward but leave LAS unchanged.

Name: Rising input prices shift SAS rightward but leave LAS unchanged.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Rising input prices typically increase production costs, which can shift the Short-Run Aggregate Supply (SAS) curve leftward, not rightward, as firms reduce output at existing price levels. The Long-Run Aggregate Supply (LAS) remains unchanged as it is determined by factors like technology and resources, not input prices.

Rising Input Prices Shift SAS Rightward but Leave LAS Unchanged