Refer to the Graph Above

question 117

Multiple Choice

Refer to the graph above. Which of the following factors will shift AS₁ to AS₂?

• A) An increase in real interest rates
• B) A decrease in business subsidies
• C) An increase in input prices
• D) A decrease in business taxes

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Definitions:

Independent Variables

Variables in an experiment or model that are manipulated to determine their effect on dependent variables.

Observations

Specific instances of data collected or noticed during an experiment or study.

Quadratic Model

A statistical model used to describe a relationship between a response variable and one or more predictor variables where the relationship is parabolic.

Interaction Term

An additional term in a statistical model that represents the effect on the response variable of combining two or more variables.