(Figure: Determining SRAS Shifts 2) Consider the Shift in Aggregate

question 34

Multiple Choice

(Figure: Determining SRAS Shifts 2) 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) Businesses are increasingly optimistic about the future.
• C) Incomes of consumers decrease.
• D) Taxes on businesses increase.

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Definitions:

Depolarization

A reduction in the difference in voltage across a cell's plasma membrane, making it more positive inside.

Hyperpolarization

An increase in a cell's membrane potential, making it more negative, and often reducing the likelihood of producing a nerve impulse.

Repolarization

The process of restoring the resting negative charge inside a cell membrane after depolarization, crucial for the function of nerve and muscle cells.

Nervous System

The complex network of nerve cells and fibers that transmits nerve impulses between parts of the body, comprising the central and peripheral nervous systems.