-Refer to the Graph Above to Answer This Question

question 102

Multiple Choice

-Refer to the graph above to answer this question.What could cause the change in aggregate supply from AS₁ to AS₂?

• A)An increase in resource prices.
• B)An increase in business taxes.
• C)An improvement in technology.
• D)The real balances,interest-rate,and foreign-trade effects.
• E)A decrease in the price level.

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Definitions:

Corn

A cereal plant that bears large grains, or kernels, set in rows on a cob; an important crop for food, animal feed, and biofuel.

Acquired Comparative Advantage

The ability gained through strategic development and investment in industries or areas where a country or firm did not previously have a natural comparative advantage.

German Beer

Refers to beer produced in Germany, known for its quality and variety, and regulated by the Reinheitsgebot, or beer purity law.

American Beer

Typically refers to beer produced in the United States, often characterized by a lighter lager style but also includes a wide variety of craft brews.