(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:

Rhinorrhea

The medical term for a runny nose, indicating the excessive discharge of mucus from the nasal passages.

Otoscopic Examination

A medical procedure using an otoscope to inspect the external auditory canal and tympanic membrane of the ear.

Pinna

The outer part of the ear, made of cartilage and skin, which functions in capturing sound waves and directing them into the ear canal.

Indurated Base

Describes the firm or hardened area at the base of a skin lesion, which can be indicative of underlying disease or infection.