When Short-Run Aggregate Supply Decreases, It Means That the Short-Run

question 24

Multiple Choice

When short-run aggregate supply decreases, it means that the short-run aggregate supply curve shifts to the _____ and the quantity of aggregate output that producers are willing to supply _____.

• A) right; decreases
• B) right; increases
• C) left; decreases
• D) left; increases

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Definitions:

Schedule A

An IRS form used for itemizing deductions such as medical and dental expenses, taxes paid, interest paid, gifts to charity, and casualty and theft losses.

Qualified Residence

A primary or secondary home that meets certain IRS criteria, allowing for potential mortgage interest deductions.

Deduction

An expense that can be subtracted from gross income to reduce the amount of income subject to income tax.

Taxpayer's Principal Residence

The primary dwelling a taxpayer lives in for a major portion of the year, which can qualify for certain tax benefits like the mortgage interest deduction.