What Is the Effect of an Increase in Input Prices

question 109

Multiple Choice

What is the effect of an increase in input prices on the short-run aggregate supply curve?

• A)It shifts rightward, which means the quantity supplied at any price level increases.
• B)It shifts leftward, which means the quantity supplied at any price level increases.
• C)It shifts rightward, which means the quantity supplied at any price level declines.
• D)It shifts leftward, which means the quantity supplied at any price level declines.

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