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Shifting Short Run Aggregate Supply
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Shifting Short Run Aggregate Supply
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17. Aggregate Demand and Aggregate Supply Analysis / Shifting Short Run Aggregate Supply / Problem 3
Problem 3
Evaluate the impact of expected future price increases on the short run aggregate supply curve.
A
The SRAS curve will become steeper.
B
The SRAS curve will remain unchanged as expectations do not affect supply.
C
The SRAS curve will shift to the left as firms reduce production.
D
The SRAS curve will shift to the right as firms prepare for higher demand.
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