What Impact Will Higher Production Costs Have on Short-Run Aggregate

question 166

Multiple Choice

What impact will higher production costs have on short-run aggregate supply?

• A)It will decrease, illustrated by a rightward shift in the SRAS curve.
• B)It will increase, illustrated by a leftward shift in the SRAS curve.
• C)It will decrease, illustrated by a leftward shift in the SRAS curve.
• D)It will increase, illustrated by a rightward shift in the SRAS curve.

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Definitions:

Positivism

A system of thought that regards scientific observation to be the highest form of knowledge.

Scientific Observation

The process of carefully watching and analyzing phenomena in a systematic way to gain empirical knowledge.

Religious Dogma

A system of beliefs, doctrines, or principles set forth by a religious authority as incontrovertibly true.

Exploitation

The act of treating someone unfairly by using their work or ideas and giving them very little in return.