The following graph shows an increase in short-run aggregate supply (SRAS) in a hypothetical economy. Specifically, short-run aggregate supply shifts to the right from SRAS₁ to SRAS2, causing the quantity of output supplied at a price level of 125 to rise from $250 billion to $350 billion. Review the graph and then complete the table that follows. PRICE LEVEL 200 175 150 125 100 75 50 25 0 0 50 SRAS SRAS₂ 100 150 200 250 300 350 400 REAL GDP (Billions of dollars) Determinant Input Prices Burdensome Regulations Technology The following table lists several determinants of short-run aggregate supply. Complete the table by indicating the change needed in each determinant to increase short-run aggregate supply. ? Change Needed to Increase SRAS increase or decrease increase or decrease decline or improvement

Economics For Today
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Chapter20: Aggregate Demand And Supply
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The following graph shows an increase in short-run aggregate supply (SRAS) in a hypothetical economy. Specifically, short-run aggregate supply
shifts to the right from SRAS₁ to SRAS2, causing the quantity of output supplied at a price level of 125 to rise from $250 billion to $350 billion.
Review the graph and then complete the table that follows.
PRICE LEVEL
200
175
150
125
100
75
50
25
0
0
50
SRAS
SRAS₂
100 150 200 250 300 350 400
REAL GDP (Billions of dollars)
?
The following table lists several determinants of short-run aggregate supply. Complete the table by indicating the change needed in each determinant
to increase short-run aggregate supply.
Determinant
Change Needed to Increase SRAS
Input Prices
increase or decrease
Burdensome Regulations increase or decrease
Technology
decline or improvement
Transcribed Image Text:The following graph shows an increase in short-run aggregate supply (SRAS) in a hypothetical economy. Specifically, short-run aggregate supply shifts to the right from SRAS₁ to SRAS2, causing the quantity of output supplied at a price level of 125 to rise from $250 billion to $350 billion. Review the graph and then complete the table that follows. PRICE LEVEL 200 175 150 125 100 75 50 25 0 0 50 SRAS SRAS₂ 100 150 200 250 300 350 400 REAL GDP (Billions of dollars) ? The following table lists several determinants of short-run aggregate supply. Complete the table by indicating the change needed in each determinant to increase short-run aggregate supply. Determinant Change Needed to Increase SRAS Input Prices increase or decrease Burdensome Regulations increase or decrease Technology decline or improvement
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