(Figure: Determining SRAS Shifts) If there are advances in technology, the short-run aggregate supply curve will shift from SRAS to and the price level will shift to Aggregate Price Level (P) P₂ Po Q SRAS2; P1 SRAS1; P1 SRAS2; P2 SRAS1; PO SRAS2 Q₂ Qo Q₁ Aggregate Output (Q) SRASO AD SRAS₁

(Figure: Determining SRAS Shifts) If there are advances in technology, the short-run aggregate supply curve will shift from SRAS to and the price level will shift to Aggregate Price Level (P) P₂ Po Q SRAS2; P1 SRAS1; P1 SRAS2; P2 SRAS1; PO SRAS2 Q₂ Qo Q₁ Aggregate Output (Q) SRASO AD SRAS₁

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

(Figure: Determining SRAS Shifts) If there are advances in technology, the short-run aggregate
supply curve will shift from SRAS to
and the price level will shift to
Aggregate Price Level (P)
P₂
Po
Q
SRAS2; P1
SRAS1; P1
SRAS2; P2
SRAS1; PO
SRAS2
Q₂ Qo Q₁
Aggregate Output (Q)
SRASO
AD
SRAS₁

Which of the following will NOT shift the aggregate supply curve to the left?
decrease in corporate taxes
an increase in the legislated amount of paid vacation
an increase in the rice of crude oil
an increase in minimum wage

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Step 1: Define SRAS curve

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Step 2: Explanation to question SRAS shift

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Step 3: Explanation to question 2 (aggregate supply curve)

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