An increase in which of the following is most likely to cause the short-run aggregate supply curve to shift to the left?
A) Consumers' income
B) The money supply
C) Government spending
D) The optimism of business firms
E) The per unit cost of production
Ans: E) The per unit cost of production
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What would happen in the market for knee replacement surgery if insurance companies started to cover a smaller portion of the cost of the surgery, and fewer doctors decide to enter the field of joint replacement surgery?
A) Supply will decrease, but this will not shift the demand curve. B) Demand will decrease and supply will increase. C) Demand and supply will both decrease. D) Demand will decrease, but this will not shift the supply curve.
You hold currency from a foreign country. If that country has a higher rate of inflation than the United States, then over time the foreign currency will buy
a. more goods in that country and buy more dollars. b. more goods in that country but buy fewer dollars. c. fewer goods in that country but buy more dollars. d. fewer goods in that country and buy fewer dollars.