Question

If mergers between firms increase throughout the economy, what would happen to the SRAS curve?

a) SRAS would disappear.

b) SRAS shifts left.

c) SRAS would not change.

d) SRAS shifts right.

Answer 1

b) SRAS shifts left. but i am not sure

Answer 2

b) SRAS shifts left.

Step-by-step explanation:

The SRAS or Short run aggregate supply is the curve that shows the profit that companies are making from producing and selling services and products, if firms start to merge then that would initally create a shift to the left, meaning that the profit of the firms will decrease, but as they stabilize the curve will begin to shift towards the right and into balance.