APFIVE Causes of a Short-Run Aggregate Supply Shift
A country is choosing to observe an increase in its short-run aggregate supply, resulting in lower price levels and higher real GDP. What is the most likely cause for the rightward shift in the SRAS curve?
A
Expansionary monetary policy that boosts the money supply.
B
A contractionary fiscal policy that reduces government spending.
C
An increase in consumer confidence leading to higher aggregate demand.
D
A reduction in nominal input prices that lowers production costs.
Question Leaderboard
Not enough data yet to show leaderboard.