Economics) "Shoe Industry under Pressure Amid Rising Costs"Rising costs have forced about 15 per cent of shoemanufacturers in a major south China industrialcentre to shut down or relocate in the past year...[the firms have] identified rising wages as a keyfactor behind the closures and relocations fromDongguan...The problems in the footwear industryreflect broader issues affecting manufacturersacross China's Pearl River Delta..." www.ft.com,2/26/2008Using an AS/AD framework to describe the eventsin the story, there would be aA) leftward shift in the SAS curve.B) rightward shift in the AD curve.C) leftward shift in the AD curve.D) rightward shift in the SAS curve

AD curve represents the aggregate demand in the economy and AS curve is a representation of the…

Using an AS/AD framework to describe the events in the story, there would be a A) leftward shift in the SAS curve. B) rightward shift in the AD curve. C) leftward shift in the AD curve. D) rightward shift in the SAS curve

Using an AS/AD framework to describe the events in the story, there would be a A) leftward shift in the SAS curve. B) rightward shift in the AD curve. C) leftward shift in the AD curve. D) rightward shift in the SAS curve

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: The Cost Of Production

Section: Chapter Questions

Problem 9PA

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Question

Economics
) "Shoe Industry under Pressure Amid Rising Costs"
Rising costs have forced about 15 per cent of shoe
manufacturers in a major south China industrial
centre to shut down or relocate in the past year...
[the firms have] identified rising wages as a key
factor behind the closures and relocations from
Dongguan...The problems in the footwear industry
reflect broader issues affecting manufacturers
across China's Pearl River Delta..." www.ft.com,
2/26/2008
Using an AS/AD framework to describe the events
in the story, there would be a
A) leftward shift in the SAS curve.
B) rightward shift in the AD curve.
C) leftward shift in the AD curve.
D) rightward shift in the SAS curve

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