Which of the Following Would Cause Prices to Fall and Output

question 192

Multiple Choice

Which of the following would cause prices to fall and output to rise in the short run?

• A) Short-run aggregate supply shifts right.
• B) Short-run aggregate supply shifts left.
• C) Aggregate demand shifts right.
• D) Aggregate demand shifts left.

---

Definitions:

Consumer Income

The total amount of income available to an individual or household for spending, saving, or investment after taxes.

Availability

The degree to which a product or service can be purchased or accessed by consumers at a given time.

Consumer Tastes

Preferences and likings of consumers that influence their purchasing decisions and are shaped by cultural, social, and individual factors.

Close Substitutes

Products or services that can easily replace each other in the eyes of the consumer due to their similarities in function or utility.