A The price level increases The shortrun aggregate supply cu

A.

The price level increases. The short-run aggregate supply curve will

A. shift to the right.B. shift to the left.C. remain unchanged.

B.

Input prices decrease. The short-run aggregate supply curve will

A. shift to the right.B. shift to the left.C. remain unchanged.

Solution

Ans) C is the correct option. Remain unchanged. There will be a movement along the supply curve and there will be no shift

Ans) A is the correct option. Shift to the right. When input prices decreases the cost of production decreases which shifts the aggregate supply curve to the right because supply increases