A. Reference: Ref 12-4 B. Figure: Aggregate Supply Movements Reference: Ref 12-4

Question

A.

Reference: Ref 12-4

B.

Figure: Aggregate Supply Movements

Reference: Ref 12-4

(Figure: Aggregate Supply Movements) Refer to the accompanying figure called Aggregate Supply Movements. In this figure, ________. an increase in the price level is responsible for pushing the SRAS curve to the right a decrease in the price level is responsible for pushing the SRAS curve to the right there has been an increase in the short-run aggregate supply there has been a decrease in the short-run aggregate supply (Figure: Aggregate Supply Movements) Refer to the accompanying figure called Aggregate Supply Movements. In this figure, ________. an increase in the price level is responsible for pushing the SRAS curve to the right a decrease in the price level is responsible for pushing the SRAS curve to the right there has been an increase in the short-run aggregate supply there has been a decrease in the short-run aggregate supply B. A simultaneous rise in productivity and nominal wages would shift the short-run aggregate supply curve to the: left if the cost per unit of output falls. right if the rise in nominal wages is larger than the rise in productivity. right if the cost per unit of output rises. left if the rise in nominal wages is larger than the rise in productivity.

Explanation / Answer

a. an increase in the price level is responsible for pushing SRAS curve to the right

b. right if the rise in nominal wages is larger than the rise in productivity

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