(Figure: Determining SRAS Shifts 3) Consider the Shift in Aggregate

question 207

Multiple Choice

(Figure: Determining SRAS Shifts 3) Consider the shift in aggregate supply shown in the accompanying figure. Which of these might cause this change in short-run aggregate supply?

• A) Unions successfully negotiate higher wages.
• B) Subsidies to firms increase.
• C) Incomes of consumers decrease.
• D) Workers and firms believe that inflation is going to fall.

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Definitions:

Variables

Elements, features, or factors that are likely to vary or change from one instance to another within a study or experiment.

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Sample Linear Regression Model

A statistical model that estimates the relationship between a dependent variable and one or more independent variables using a linear equation.