Short-Run Aggregate Supply

What does the Short-Run Aggregate Supply (SRAS) curve represent?

• Total consumer spending in an economy

• Total goods and services producers are willing to supply at different price levels in the short run

• The effect of exports and imports on supply

• The amount of investment over time

In the short run, what is a key assumption about production costs like wages?

• They increase quickly

• They are flexible and adjust instantly

• They are eliminated

• They remain fixed

What does the vertical axis on an SRAS graph show?

• General price level

• Quantity of exports

• Nominal GDP

• Consumption rates

A movement along the SRAS curve is caused by:

• Changes in productivity

• Changes in the general price level

• Government intervention

• Exchange rate shifts

What happens to SRAS when production costs rise?

• It shifts to the right

• It shifts to the left

• It remains unchanged

• It becomes vertical

Which of the following is NOT a cause of a shift in the SRAS curve?

• Changes in productivity

• A change in the general price level

• Wage changes

• Raw material costs

What would cause the SRAS to shift to the right?

• Higher fuel prices

• Lower productivity

• Unfavourable tax policy

• Improved technology and training

What does the SRAS curve look like on a graph?

• Downward sloping from left to right

• Upward sloping from left to right

• A straight horizontal line

• A vertical line

Which of the following is a non-price factor that could shift SRAS?

• Lower price level

• Government subsidies

• Higher exports

• Increasing consumption

What does a shift of the SRAS curve to the left indicate?

• Higher costs or lower productivity

• An increase in demand

• Higher levels of output

• Expansion along the curve