Figure 35-9

question 22

Multiple Choice

Figure 35-9. The left-hand graph shows a short-run aggregate-supply SRAS) curve and two aggregate-demand AD) curves. On the right-hand diagram, "Inf Rate" means "Inflation Rate."
-Refer to Figure 35-9. Which of the following events could explain the shift of the aggregate-supply curve from AS1 to AS2?

• A) a reduction in firms' costs of production
• B) a reduction in taxes on consumers
• C) an increase in the price level
• D) an increase in the world price of oil

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Definitions:

Marginal Benefit

The extra pleasure or benefit derived from consuming an additional unit of a product or service.

Corporate Job

Employment within a company or organization that usually involves office-based work, specialized roles, and hierarchical positions.

Opportunity Cost

is the loss of potential gain from other alternatives when one alternative is chosen.

Rational Decisions

Choices made by individuals that align with their own self-interest and are based on an evaluation of the costs and benefits of the action.