Which of the Following Changes Shifts the SRAS Curve Up

question 19

Multiple Choice

Which of the following changes shifts the SRAS curve up?

• A)A decrease in the labor force
• B)A decrease in the money supply
• C)An increase in government purchases
• D)An increase in firms' costs

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Definitions:

Government Purchases

Expenditures by government agencies on goods and services that directly satisfy public consumption or investment in public infrastructure.

Transfer Payments

Payments made by governments to individuals without any expectation of services or goods in return, often in the form of welfare or subsidies.

U.S. Output

The total economic production of goods and services by the United States.

Proprietary Income

Income derived from the ownership of a business entity or patent.