In the short run,________.
A)when expected inflation rises,there is a movement up along the AS curve
B)workers pushing for higher wages causes output to rise
C)the aggregate supply curve may shift to the right with increases in output
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

In the short run, the aggregate supply curve represents the total planned output when prices in the economy can change but the prices and productivity of all factor inputs, like labor and capital, are held constant. A) is incorrect because when expected inflation rises, it typically shifts the AS curve, not just a movement along it. B) is incorrect because workers pushing for higher wages typically increases production costs, leading to a leftward shift in the AS curve, not an increase in output. C) is incorrect because increases in output in the short run are typically represented by movements along the AS curve, not shifts to the right; shifts to the right in the AS curve are associated with factors like technological improvements or increases in input availability, not just increases in output.

In the Short Run,________