Which of the following would cause the Aggregate Supply curve to move from AS to AS2 in the graph below?   A) A general increase in energy and labor cost for businesses. B) A general decrease in labor cost for businesses. C) An increase in productivity. D) A federal government increase in spending.

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter5: Difficult Cases For The Market And The Role Of Government
Section: Chapter Questions
Problem 11CQ
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Which of the following would cause the Aggregate Supply curve to move from AS to AS2 in the graph below?
 
A) A general increase in energy and labor cost for businesses.
B) A general decrease in labor cost for businesses.
C) An increase in productivity.
D) A federal government increase in spending.
150
140
130
120
110
100
90
80
70
60
10
15
20
25
Real GDP ($ billion)
AS
-AD AS2
Price Level
Transcribed Image Text:150 140 130 120 110 100 90 80 70 60 10 15 20 25 Real GDP ($ billion) AS -AD AS2 Price Level
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