1. All of the following would cause a shift in supply curve except A change in t
ID: 1131275 • Letter: 1
Question
1. All of the following would cause a shift in supply curve except
A change in the price level
An increase in the real wages of workers
A decrease in productivity
The emergence of a new production technology
A tax on all manufactured goods
2. If a new technology increases productivity then short-run aggregate supply will
Shift right and output and price level will increase
Shift left and output and price level will increase
Shift right and output and price level will decrease
Shift left and output will increase and price level will decrease
Shift right and output will increase and price level will decrease
2. The price level increases due to demand pull inflation. As a result
Short-run aggregate supply will shift left
Short-run aggregate supply will shift right
There will be a movement up the short-run aggregate supply curve
There will be a movement down the short-run aggregate supply curve
The aggregate supply curve will not be impacted
*PLEASE INCLUDE A BRIEF EXPLANATION*
Explanation / Answer
Answer 1:
Option A. Since we take price level on vertical axis, thus any change in the price level will lead to movement along the supply curve and not shift of the supply curve.
Answer 2:
Option E. Increase in productivity by a new technology will shift short run aggregate supply curve to right and thus price level will decrease and output will increase.
Answer 3:
Option C. Increase in the price level will increase the amount of quantity supplied by the producer. Thus, there will be a movement up the short run aggregate supply curve of the producer.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.