The following table lists several determinants of short-run aggregate supply. 4 Fill in the table by indicating the changes in the determinants necessary to decrease short-run aggregate supply. Change Needed to Decrease AS Inflation expectations Human capital Technology

Principles of Economics, 7th Edition (MindTap Course List)
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Chapter33: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
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Q75
50
25
0
0
50 100 150 200 250 300 350 400
QUANTITY OF OUTPUT
The following table lists several determinants of short-run aggregate supply.
Fill in the table by indicating the changes in the determinants necessary to decrease short-run aggregate supply.
Change Needed to Decrease AS
Inflation expectations
Human capital
Technology
Transcribed Image Text:Q75 50 25 0 0 50 100 150 200 250 300 350 400 QUANTITY OF OUTPUT The following table lists several determinants of short-run aggregate supply. Fill in the table by indicating the changes in the determinants necessary to decrease short-run aggregate supply. Change Needed to Decrease AS Inflation expectations Human capital Technology
6. Determinants of aggregate supply
The following graph shows a decrease in short-run aggregate supply (AS) in a hypothetical economy where the currency is the dollar. Specifically, the
short-run aggregate supply curve shifts to the left from AS₁ to AS2, causing the quantity of output supplied at a price level of 100 to fall from $200
billion to $150 billion.
200
AS₂
175
150
125
100
75
50
PRICE LEVEL
25
0
0
50
100
II
II
II
II
I
II
I
I
150
200
s
250
AS₁
300
350
400
Transcribed Image Text:6. Determinants of aggregate supply The following graph shows a decrease in short-run aggregate supply (AS) in a hypothetical economy where the currency is the dollar. Specifically, the short-run aggregate supply curve shifts to the left from AS₁ to AS2, causing the quantity of output supplied at a price level of 100 to fall from $200 billion to $150 billion. 200 AS₂ 175 150 125 100 75 50 PRICE LEVEL 25 0 0 50 100 II II II II I II I I 150 200 s 250 AS₁ 300 350 400
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