Which of the Followings Does NOT Shift the Short-Run Aggregate

question 16

Multiple Choice

Which of the followings does NOT shift the short-run aggregate supply curve?

• A)supply shocks.
• B)persistent positive output gap.
• C)changes in expected inflation.
• D)an increase in output gap.

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Definitions:

Inverse Demand Function

A representation of demand that expresses price as a function of quantity, rather than the conventional demand function which expresses quantity demanded as a function of price.

Price Elasticity

Measures the responsiveness of quantity demanded or supplied to a change in price.

Wealth

The abundance of valuable resources or valuable material possessions, including the total of all financial assets minus any liabilities.

Price Elasticity

A measure in economics that shows how the quantity demanded of a good or service responds to a change in its price.