10 Questions
What is the main cause of a shift in Short-Run Aggregate Supply (SRAS)?
Changes in the cost of production
How do increases in the cost of raw materials and energy impact the Short-Run Aggregate Supply (SRAS) curve?
Shifts SRAS to the left
What effect does a weaker pound have on the Short-Run Aggregate Supply (SRAS) curve?
Decreases SRAS
How do changes in tax rates influence the Short-Run Aggregate Supply (SRAS) curve?
Shifts SRAS to the left
Which factor causes a fall in Short-Run Aggregate Supply (SRAS) and shifts it to the left?
Increases in the cost of raw materials and energy
What impact do subsidies have on the Short-Run Aggregate Supply (SRAS) curve?
Shifts SRAS to the right
How does a stronger pound influence Short-Run Aggregate Supply (SRAS)?
Increases SRAS
Which factor directly causes a shift in the Short-Run Aggregate Supply (SRAS) curve to the right?
Subsidies
During cost-push inflation, what happens to the Short-Run Aggregate Supply (SRAS) curve?
It shifts to the left
How do changes in oil prices affect Short-Run Aggregate Supply (SRAS)?
Decrease SRAS
Test your knowledge on the elasticity of short run aggregate supply and its impact on prices. Learn how firms respond to changes in output and the factors that influence the elasticity of supply in the short run.
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