Refer to the Following Figure to Answer the Questions That

question 8

Multiple Choice

Refer to the following figure to answer the questions that follow.

-Based on the figure,which of the following would cause the short-run aggregate supply curve to shift from SRAS₁ to SRAS₂?

• A) Congress votes to increase the minimum wage.
• B) There is an increase in spending and firms respond by producing more output.
• C) Wages and input prices fall as the economy recovers from a recession.
• D) A severe drought reduces farm production.
• E) A temporary rise in the price of oil results in higher gasoline prices.

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Definitions:

Supply of British Pounds

The total amount of British pounds (GBP) available for transactions and investment in the currency markets.

Appreciation

An increase in the value of an asset, currency, or other financial instrument over time.

Financial and Real Assets

Financial assets refer to assets like stocks and bonds, while real assets refer to physical assets such as land, buildings, and machinery.