(Figure: Determining SRAS Shifts 2) Which of the Following

question 180

Multiple Choice

(Figure: Determining SRAS Shifts 2) Which of the following might be a cause of the change in short-run aggregate supply?

• A) Unions successfully negotiated higher wages.
• B) Businesses are increasingly optimistic about the future.
• C) Consumer incomes dropped.
• D) Taxes on businesses are raised.

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Definitions:

Interest Rates

The cost of borrowing money or the return on investment for savings, typically expressed as a percentage.

Collateral

An asset that a borrower offers to a lender to secure a loan, which the lender can seize if the loan is not repaid.