Exhibit 10-2 Aggregate Supply and Demand Curves a Shift

question 106

Multiple Choice

Exhibit 10-2 Aggregate supply and demand curves A shift in the aggregate supply curve in Exhibit 10-2 from AS₁ to AS₂ would be caused by a(n) :

• A)decrease in input prices.
• B)increase in input prices.
• C)increase in real GDP.
• D)decrease in real output.

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Definitions:

Tariffs

Taxes on imports or exports between sovereign states, used to control trade, raise government revenue, or protect domestic industries.

United States

A country located in North America, consisting of 50 states and a federal district, known for its large economy and diverse population.

Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared and capable of buying at a specified price.

Producer Surplus

The difference between the current market price and the cost of production for the firm.