Refer to the Following Figure to Answer the Following Questions

question 24

Multiple Choice

Refer to the following figure to answer the following questions.
-Based on the figure,which of the following would cause the short-run aggregate supply curve to shift from SRAS₁ to SRAS₂?

• A) Congress votes to increase the minimum wage.
• B) There is an increase in spending and firms respond by producing more output.
• C) Wages and input prices fall as the economy recovers from a recession.
• D) A severe drought reduces farm production.
• E) A temporary rise in the price of oil results in higher gasoline prices.

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Definitions:

Product Costs

The costs that are directly associated with the production of goods or services, including labor, materials, and manufacturing overhead.