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Which of the following events would cause an increase in short run aggregate supply Quizlet

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What causes an increase in short

In the short run, aggregate supply responds to higher demand (and prices) by increasing the use of current inputs in the production process. In the short run, the level of capital is fixed, and a company cannot, for example, erect a new factory or introduce a new technology to increase production efficiency.

Which of the following events would cause a movement along the short − run aggregate supply curve?

Answer and Explanation: The correct answer is b. A decrease in the price level. This causes movement along the aggregate demand curve.

What causes changes in short

In the short run, there is a positive relationship between the price level and the quantity of aggregate supply. There are three reasons for this relationship: inflexible input prices, menu costs, and money illusion. All long run aggregate supply curve shifts also cause the short-run aggregate supply curve to move.

What causes a decrease in short

There are several determinants that can shift SRAS, increasing it or decreasing it. These determinants include factor prices, technology, labor productivity, availability of factors of production, government rules, taxes, and subsidies.

events increase short run aggregate supply quizlet

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