An increase in the expected price level shifts

the short-run and long-run aggregate supply curves left.

the short-run but not the long-run aggregate supply curve left.

the long-run but not the short-run aggregate supply curve left.

neither the long-run nor the short-run aggregate supply curve left.

Question

Business

Julio Andersen

20 August, 07:21

An increase in the expected price level shifts

the short-run and long-run aggregate supply curves left.

the short-run but not the long-run aggregate supply curve left.

the long-run but not the short-run aggregate supply curve left.

neither the long-run nor the short-run aggregate supply curve left.

+2

Answers (1)

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Benton · Answer 1

Answer: B) the short-run but not the long-run aggregate supply curve left.

Explanation:

Increased in the expected price level shift towards the short run but not the long run aggregate supply shifts towards the left as, increased in the price which reduced in the quantity demand of the good and the curve of long run are unaffected in the change of the expected level price. And the suppliers assumed that they can purchased the more goods or product in the less price and makes a good profit so that is why, the curve shifts towards left.

An increase in the expected price level shiftsthe short-run and long-run aggregate supply curves left.the short-run but not the long-run aggregate supply curve left.the long-run but not the short-run aggregate supply curve left.neither the long-run nor the short-run aggregate supply curve left.