Which of the following are the factors that affect the short- run aggregate supply curve?
A) input prices
B) taxes and subsidies
C) the state of technology
D) All of the above can affect the SRAS curve.

Question

Quizplus · Accepted Answer

All of the above factors can affect the short-run aggregate supply (SRAS) curve. Input prices refer to the prices of the inputs or resources used in production, such as wages, raw materials, and energy. An increase in input prices will result in higher production costs, causing the SRAS curve to shift to the left. Taxes and subsidies directly affect the costs of production for firms, with higher taxes reducing profitability and subsidies lowering costs. Changes in technology can lead to improvements in efficiency and lower production costs, causing the SRAS curve to shift to the right.

Which of the Following Are the Factors That Affect the Short-