Question
6 . Determinants of aggregate supply The following graph shows a decrease in short-run aggregate supply (AS) in a hypothetical economy where the currency is
6 . Determinants of aggregate supply
The following graph shows a decrease in short-run aggregate supply (AS) in a hypothetical economy where the currency is the dollar. Specifically, the short-run aggregate supply curve shifts to the left from AS1AS1to AS2AS2, causing the quantity of output supplied at a price level of 100 to fall from $200 billion to $150 billion.
0501001502002503003504002001751501251007550250PRICE LEVELQUANTITY OF OUTPUTAS1AS2
The following table lists several determinants of short-run aggregate supply.
Complete the table by selecting the changes in each scenario necessary to decrease short-run aggregate supply.
| Change Necessary to Decrease AS | |
|---|---|
| Technology | |
| Human capital | |
| Inflation expectations |
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
