DeterminantChange Needed to Increase SRASSRASTechnology (Decline, Improvement)Input Prices (Decrease, Increase)Tax Rates on Firms and Corporations (Decrease, Increase) 3. Nonprice-level determinants of aggregate supplyThe following graph shows an increase in short-run aggregate supply (SRAS) in a hypothetical economy. Specifically, short-run aggregate supplyshifts to the right from SRASi to SRAS2, causing the quantity of output supplied at a price level of 125 to rise from $250 billion to $350 billion.Review the graph and then complete the table that follows.200175150SRAS,SRAS,12510075502550100150200250300350400REAL GDP (Billions of dollars)PRICE LEVEL The following table lists several determinants of short-run aggregate supply. Complete the table by indicating the change needed in each determinantto increase short-run aggregate supply.DeterminantChange Needed to Increase SRASTechnologyInput PricesTax Rates on Firms and Corporations

1)Technology should increase to increase short run aggregate supply.

The following table lists several determinants of short-run aggregate supply. Complete the table by indicating the change needed in each determin. to increase short-run aggregate supply. Determinant Change Needed to Increase SRAS Technology Input Prices Tax Rates on Firms and Corporations

The following table lists several determinants of short-run aggregate supply. Complete the table by indicating the change needed in each determin. to increase short-run aggregate supply. Determinant Change Needed to Increase SRAS Technology Input Prices Tax Rates on Firms and Corporations

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

100%

Determinant	Change Needed to Increase SRASSRAS
Technology	(Decline, Improvement)
Input Prices	(Decrease, Increase)
Tax Rates on Firms and Corporations	(Decrease, Increase)

3. Nonprice-level determinants of aggregate supply
The following graph shows an increase in short-run aggregate supply (SRAS) in a hypothetical economy. Specifically, short-run aggregate supply
shifts to the right from SRASi to SRAS2, causing the quantity of output supplied at a price level of 125 to rise from $250 billion to $350 billion.
Review the graph and then complete the table that follows.
200
175
150
SRAS,
SRAS,
125
100
75
50
25
50
100
150
200
250
300
350
400
REAL GDP (Billions of dollars)
PRICE LEVEL

The following table lists several determinants of short-run aggregate supply. Complete the table by indicating the change needed in each determinant
to increase short-run aggregate supply.
Determinant
Change Needed to Increase SRAS
Technology
Input Prices
Tax Rates on Firms and Corporations

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