-In the Above Figure, the Short- Run Aggregate Supply Curve

question 199

Multiple Choice

-In the above figure, the short- run aggregate supply curve is SAS₁. If the prices of resources fall, there is

• A) a shift to SAS₂.
• B) a shift to SAS₀.
• C) a downward movement along SAS₁.
• D) an upward movement along SAS₁.

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Definitions:

Interest Rate

The percentage charged on borrowed money or paid on invested capital, reflecting the cost of borrowing or the reward for investing.

Investing

The act of allocating resources, typically money, with the expectation of generating an income or profit.

Interest Rate

The amount charged by lenders to borrowers for the use of assets, expressed as a percentage of the principal, the rate can influence inflation and economic activity.

Investing

Channeling money or assets towards avenues with the expectation of profit or income generation.