Question

Nhich of these scenarios would cause the U.S. short-run aggregate supply curve to shift to the left? Correct Answer(s) Drag appropriate answers) here Foreign buyers experience a decrease in income. Many workers signed contracts last year assuming 19 future inflation. This year, it was revealed that current inflation is nearly 596. A mysterious disease kills off half of the nation's corn crop. Most workers signed contracts last year assuming 3% future inflation. This year, it was revealed that current inflation is only 196. After the FDA announces a new set of regulations for next year, consumers expect all grocery prices to fall. Drag appropriate answers) here Incorrect Answer(s)

Answer 1

Short run AS curve shifts left when there is a rise in real wages, input prices such as price of oil, reduction in productivity, or a reduction in production due to natural disasters or bad harvest. Here we have two cases where ut is likely that SRAS will shift left (decrease)

• Disease that kills half of the crop (2nd option in the left)
• Workers expecting an inflation rate of 1% but now current inflation is 5% (first option in the right)

Select these two options.