Do not beat cuuue Short-Run Aggregate Supply (SRAS) Part 1 - Check Your Understanding- Answer the questions assuming an upward sloping SEAS. THY AP Macro Topic 3.3 ecobtuunswpcam-vcnc rsaqeevrb' sota Ir: 1. Explain why an increase in price level results in an increase in the quantity supplied of goods and services in the short-run. 2. if the size of the labor force is constant. what will likely happen to unemployment as price level increases in the short-run? Explain. 3. Explain why wages are more rigid {or sticky} when price level falls rather than when price level increases. Part 2 - Practice- For each of the ioiiowing situations. identity the determinant (shifted and indicate if the short run aggregate supply (ERA S) wouid most likely increase, decrease, or not change. 4. Raw material and resource prices _ increase significantly in the US. 5. Computer technology brings new _ efciency to industries. 6. There is a significant increase in due to new training programs. El. The government raises corporate taxes _ El. An increase in expected ination causes workers to demand higher wages. 1D. The government gives tax credits to businesses. 11. There is a significant decrease in the price of electricity. 12. Due to a trade dispute, oil prices more than double. 13. Businesses begin tracking inventories electronically, increasing efciency. 14. A signicant increase in government transfer payments to individuals