Aggregate demand and aggregate supply

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Question 37
Easy

The diagram below shows a shift in an economy's short-run aggregate supply curve from SRAS1\text{SRAS}_1SRAS1​ to SRAS2\text{SRAS}_2SRAS2​, while its long-run aggregate supply (LRAS\text{LRAS}LRAS) curve remains unchanged.

Shift in Short-Run Aggregate Supply

Which of the following events is most likely to have caused this shift?

A general rise in the level of world commodity prices

A sustained increase in net inward migration of working-age population

An increase in state funding for industrial employee apprenticeship schemes

A reduction in the main rate of value-added tax (VAT)

Aggregate demand and aggregate supply Questions

  1. A Level
  2. /Economics
  3. /Aggregate demand and aggregate supply