Understanding the SRAS Curve

What does the SRAS curve represent in the context of IB Economics?

• The relationship between the price level and the quantity of real GDP supplied in the short run.

• The relationship between the interest rate and the quantity of money supplied.

• The relationship between the price level and the quantity of real GDP demanded.

• The relationship between the exchange rate and the quantity of exports.

Which of the following factors can cause a shift in the SRAS curve?

• Changes in consumer preferences.

• Changes in resource prices

• Changes in the money supply.

• Changes in government spending.

In the short run, why might the SRAS curve be upward sloping?

• Because wages and prices are flexible.

• Because of the law of diminishing returns.

• Because some input prices are sticky.

• Because of the substitution effect.

What is the effect of an increase in the cost of raw materials on the SRAS curve?

• It shifts the SRAS curve to the right.

• It shifts the SRAS curve to the left.

• It causes a movement along the SRAS curve.

• It has no effect on the SRAS curve.

What happens to the SRAS curve if there is a decrease in business taxes?

• It shifts to the left.

• It shifts to the right.

• It remains unchanged.

• It becomes vertical.

Which of the following would cause a movement along the SRAS curve?

• A change in the price level.

• A change in the level of technology.

• A change in the cost of production.

• A change in government regulations.

What is the effect of a decrease in oil prices on the SRAS curve?

• It shifts the SRAS curve to the left.

• It shifts the SRAS curve to the right.

• It causes a movement along the SRAS curve.

• It has no effect on the SRAS curve.

Which of the following best describes the short-run in macroeconomic analysis?

• A period in which all prices are flexible.

• A period in which some prices are sticky.

• A period in which the economy is at full employment.

• A period in which the government controls all economic activity.

What is the likely impact on the SRAS curve if there is an increase in the minimum wage?

• It shifts the SRAS curve to the left.

• It shifts the SRAS curve to the right.

• It causes a movement along the SRAS curve.

• It has no effect on the SRAS curve.

Which of the following scenarios would cause the SRAS curve to shift to the left?

• A decrease in the cost of production.

• An increase in the labor force.

• An increase in input prices.

• A technological advancement.