Causes of a Short-Run Aggregate Supply Shift
A country experiences a rightward shift in its short-run aggregate supply (SRAS) curve, resulting in a lower price level and higher real gross domestic product (GDP). Which of the following is the most likely cause of this shift?
A
An increase in consumer confidence leading to higher aggregate demand.
B
A contractionary fiscal policy that reduces government spending.
C
Expansionary monetary policy that boosts the money supply.
D
A reduction in nominal input prices that lowers production costs.
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