A change in _____ would cause a shift of the short-run aggregate supply curve.Choose one answer from the options below.the quantity of real output supplied the price levelcommodity pricesaggregate demand
Question
A change in _____ would cause a shift of the short-run aggregate supply curve.Choose one answer from the options below.the quantity of real output supplied the price levelcommodity pricesaggregate demand
Solution
The correct answer is "commodity prices". Changes in commodity prices, such as the prices of raw materials or labor, would cause a shift in the short-run aggregate supply curve. This is because these costs are directly related to the cost of producing goods and services. If these costs increase, the short-run aggregate supply curve will shift to the left, indicating a decrease in the quantity of goods and services supplied at each price level. Conversely, if these costs decrease, the short-run aggregate supply curve will shift to the right, indicating an increase in the quantity of goods and services supplied at each price level. Changes in the quantity of real output supplied, the price level, or aggregate demand would not cause a shift in the short-run aggregate supply curve.
Similar Questions
Which of the following shifts the short-run aggregate supply curve?Group of answer choicesa change in the price levela change in the price of oila change in short-run aggregate demandAll of these
The supply curve shifts in response to changes in non-price of supply. (Enter one word in the blank.)
The following graph illustrates a shift of the aggregate demand curve to the left. It can be caused by:
A decrease in aggregate demand causes a decrease in ________ only in the short run, but causes a decrease in ________ in both the short run and the long run.Question 4Answera.real GDP; the price levelb.the price level; the price levelc.the price level; real GDPd.real GDP; real GDP
A decrease in the costs of production causes the shift in the supply curve to the right.Select one:TrueFalse
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.