Question

Which of the following statements is true about a short term aggregate supply curve?

A. only the real output (y) will change in the sras

B. the sras is a fixed point and cannot be fixed

C. the curve can shift to the left or the right base on prices or output

D. the aggregate demand is the sum of prices and output

Answer 1

C

Step-by-step explanation:

Shifts in the SRAS curve are caused by:

- Changes in wages

- Changes in non-labour resource prices

- Changes in business taxes

- Changes in subsidies offered to businesses

- Supply shocks