Figure 15-2 -Refer to Figure 15-2.Ceteris paribus,an increase in the price level would be represented by a movement from A)SRAS₁ to SRAS₂. B)SRAS₂ to SRAS₁. C)point A to point B. D)point B to point A.

Question

Quizplus · Accepted Answer

An increase in the price level would shift the SRAS curve to the left, from SRAS1 to SRAS2. This is because higher prices make it more expensive for firms to produce goods and services, so they will supply less at any given price level.

Figure 15-2 -Refer to Figure 15-2.Ceteris Paribus,an Increase in the Price Level