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Question 3 Which of the following causes the SRAS curve to shift left? O A decrease in the money supply An increase in the Ma
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Answer-3 The correct option is An increase in the price level.

Increase in the price of an important input into the production causes the short-run aggregate production function to shift to the left.

Answer-4 The correct option is Price level falls and output falls.

As the Consumption decreases, the aggregate demand falls. As a result, aggregate demand curve shifts to the left. It causes a decrease in the price level as well as output in the short-run.

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