7. Determinants of short-run aggregate supplyThe following graph shows a decrease in short-run aggregate supply (AS) in a hypothetical economy where the currency is the dollar. Specifically, the short-run aggregate supply curve shifts to the left from AS1AS1 to AS2AS2, causing the quantity of output supplied at a price level of 100 to fall from $200 billion to $150 billion. 200AS,175AS15012510075502535010050150200250300400QUANTITY OF OUTPUTThe following table lists several determinants of short-run aggregate supply.Fill in the table by indicating the changes in the determinants necessary to decrease short-run aggregate supply.Change Needed to Decrease ASInput pricesTax ratesBurdensome regulationsPRICE LEVEL

The total supply of goods and services that firms in a national economy intend to sell over a…

Answered: 200 AS, 175 AS 150 125 100 75 50 25 350…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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7. Determinants of short-run aggregate supply

The following graph shows a decrease in short-run aggregate supply (AS) in a hypothetical economy where the currency is the dollar. Specifically, the short-run aggregate supply curve shifts to the left from AS1AS1 to AS2AS2, causing the quantity of output supplied at a price level of 100 to fall from $200 billion to $150 billion.

200
AS,
175
AS
150
125
100
75
50
25
350
100
50
150
200
250
300
400
QUANTITY OF OUTPUT
The following table lists several determinants of short-run aggregate supply.
Fill in the table by indicating the changes in the determinants necessary to decrease short-run aggregate supply.
Change Needed to Decrease AS
Input prices
Tax rates
Burdensome regulations
PRICE LEVEL

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