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Use the following to answer questions
Figure: Determining SRAS Shifts Use the following to answer questions  Figure: Determining SRAS Shifts   -(Figure: Determining SRAS Shifts) If there are advances in technology,the short-run aggregate supply curve will shift from SRAS<sub>0</sub> to _____ and the price level will become _____. A)  SRAS<sub>1</sub>;P<sub>0</sub> B)  SRAS<sub>1</sub>;P<sub>1</sub> C)  SRAS<sub>2</sub>;P<sub>1</sub> D)  SRAS<sub>2</sub>;P<sub>2</sub>
-(Figure: Determining SRAS Shifts) If there are advances in technology,the short-run aggregate supply curve will shift from SRAS0 to _____ and the price level will become _____.


Definitions:

Discount Rate

The discount rate applied to the future cash flows of a financial instrument to determine its current value.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Mutual Fund

An investment vehicle comprised of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.

IRA Funds

Investment vehicles that provide individuals with a means to save for retirement with tax advantages.

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