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Saved Refer to the graph shown. A movement from A to B is most likely to be caused by: SAS1 SASO Price level Yo Y Real output
o an increase in input prices. o a decrease in input prices. o an increase in aggregate demand. o a decrease in aggregate dem
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Answer #1

Answer - Option B

A decrease in input prices

The decrease in the price of inputs will shift the supply curve upward signifying the decrease in the supply by other than price factor.

Increase in price of input will shift the curve to right or downward and not upward. Demand will not be affected in the given situation. Hence option B is correct.

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