Figure 33-5. -Refer to Figure 33-5.The shift of the short-run aggregate-supply curve from SRAS₁ to SRAS₂ A)could be caused by an outbreak of war in the Middle East. B)could be caused by a decrease in the expected price level. C)causes the economy to experience an increase in the unemployment rate. D)causes the economy to experience stagflation.

Question

Quizplus · Accepted Answer

A shift of the short-run aggregate-supply curve to the right indicates an increase in the potential output of an economy. This could be caused by factors such as an increase in productivity or decrease in the expected price level, as indicated in option B. Options A, C, and D do not necessarily indicate a shift of the SRAS curve.

Figure 33-5. -Refer to Figure 33-5.The Shift of the Short-Run Aggregate-Supply Curve