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Other things constant, an increase in resource prices will: a. decrease aggregate demand. b. increase aggregate demand. c. decrease aggregate supply. d. increase aggregate supply.A
Other things constant, an increase in resource prices will: a. decrease aggregate demand. b. increase aggregate demand. c. decrease aggregate supply. d. increase aggregate supply.A graph depicting an aggregate demand and supply model. Real G D P in billions of dollars per year is on the horizontal axis ranging from 0 to 16 with increments of 1. Price level (C P I) is on the vertical axis ranging from 0 to 300 with increments of 50. The L R A S curve is a vertical line, rising from 8 on the horizontal axis. The S R A S curves are sloping up parallel straight lines. They are labeled S R A S_1 and S R A S_2. The S R A S_1 curve is below the S R A S_2 curve. The S R A S_1 curve intersects the L R A S curve at E_1 at (8, 150) and passes through the point E_2 at (12, 200). The S R A S_2 curve passes through the point at (4, 200), and intersects the L R A S and S R A S_2 curves at E_3 at (8, 250). The aggregate demand curves are sloping down straight lines. They are
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