Which of the Following Could Cause the Economy's AS Curve

question 77

Multiple Choice

Which of the following could cause the economy's AS curve to shift upward in the short run?

• A)an improvement in technology
• B)a decrease in the cost of capital
• C)an increase in the price level
• D)a decrease in nominal wages
• E)an increase in nominal wages

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Definitions:

Barriers to Entry

Obstacles that make it difficult for new competitors to enter a market.

Government-Set Barriers

Regulations or policies implemented by the government that restrict entry into certain markets or industries.

Demand Curve

An illustrative chart depicting how the cost of an item correlates with consumer demand for that item.

Perfectly Inelastic

A market scenario where demand or supply does not change in response to price changes.