Use the Figure Below to Answer the Following Question(s)

question 173

Multiple Choice

Use the figure below to answer the following question(s) . Figure 10-10
Given the aggregate demand and aggregate supply conditions depicted in Figure 10-10, which of the following will tend to occur?

• A) an increase in resource prices, which will shift SRAS to the left
• B) a decrease in resource prices, which will shift SRAS to the left
• C) an increase in the real rate of interest, which will shift aggregate demand to the left
• D) a decrease in the real rate of interest, which will shift aggregate demand to the left
• E) Both b and c are correct.

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