Question

 8. The short run aggregate supply curve will shift to the left, other things being equal if

 a. energy prices fall

 b. technology and productivity increase in the nation

 c. an increase in input prices occurs

 d. the capital stock of the nation increases

 9. An unusual series of rainstorms washes out the grain crop in the upper plains states, severely

 curtailing the supply of com and wheat, as well as soybeans. What effect would this situation

 have on aggregate supply?

 a. It would shift SRAS left, but not LRAS

 b. It would shift both SRAS and the LRAS left

 c. It would shift SRAS right, but not LRAS

 d. It would shift both SRAS and the LRAS right

 10. Cost-push inflation occurs when

 a. the aggregate demand curve shifts right at a faster rate than short-run aggregate supply

 b. the short-run aggregate supply curve shifts left, while aggregate demand is fixed

 c. the aggregate demand shifts left, and aggregate supply is fixed

 d. the short-run aggregate supply curve shifts right

 11. Starting from long-run equilibrium, which of the following could begin an episode of demand-

 pull inflation?

 a.

 An increase in consumer optimism

 b. A faster rate of economic growth for a major trading partner country

 c. Expectations of higher rates of return on investment

 d. Any of the above

 e. None of the above

Answer 1

8) the factors that Increases cost Production,shift aggregate supply curve to left.

So option C is correct

9)The Increase in productivity , capital stock etc ,that effect Production in long run shift long run aggregate supply curve.apart from them only affects short run aggregate supply.

So Short run supply Decreases due to crop waste,so short run aggregate supply Decreases and shifts to left.

Option A is correct

10)cost push inflation occurs when ,cost of Production Increases which leads to increase in goods price and causes inflation.

So Increase in cost of Production, Decreases supply,so aggregate supply will shift left while there is no affect on demand .

So option b is correct

11)option D is correct.

All factor that lead to increase in demand ,cause demand pulk inflation.