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?

C.  the SRAS curve would shift to the right and the LRAS curve would shift to the right

A. The SRAS curve would become steeper and the LRAS curve would remain unchanged B.  the SRAS curve would become flatter and the LRAS curve would remain unchanged

C.  the SRAS curve would shift to the right and the LRAS curve would shift to the right

D.  neither curve would be affected

Explanation / Answer

SRAS shifts to the right and LRAS shifts to the right.

It is so because without data, firms will try to supply their optimum.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

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