In the Graph Shown, a Downward Shift in the SAS

question 35

Multiple Choice

In the graph shown, a downward shift in the SAS curve:

• A)Raises domestic consumption because domestic producers produce more.
• B)Raises the trade deficit because domestic producers are more competitive.
• C)Raises domestic production because input prices have fallen.
• D)Lowers globalized potential output because domestic producers are more competitive.

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