Suppose that members of Congress successfully eliminated the Commerce Department

Question

Suppose that members of Congress successfully eliminated the Commerce Department, and in so doing the federal government no longer collected or distributed economic data (including inflation data). What impact would this have on the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve?

A) the SRAS curve would become steeper and the LRAS curve would remain unchanged

B)neither curve would be affected

C) The SRAS curce would shift to the right and the LRAS curve would shift to the right

D) the SRAS curce would become flatter and the LRAS curce would remain unchanged

Suppose that members of Congress successfully eliminated the Commerce Department, and in so doing the federal government no longer collected or distributed economic data (including inflation data). What impact would this have on the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve?

A) the SRAS curve would become steeper and the LRAS curve would remain unchanged

B)neither curve would be affected

C) The SRAS curce would shift to the right and the LRAS curve would shift to the right

D) the SRAS curce would become flatter and the LRAS curce would remain unchanged

Explanation / Answer

B) SRAS curve would become flatter and LRAS curve will remain unchanged. Flatter SRAS curve indicates that supply will now be more affected by fluctuations in price.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.