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In the Graph Shown, a Downward Shift in the SAS

Question 106

Multiple Choice

In the graph shown, a downward shift in the SAS curve: In the graph shown, a downward shift in the SAS curve: A) raises domestic consumption, because domestic producers produce more. B) raises the trade deficit, because domestic producers are more competitive. C) raises domestic production, because input prices have fallen. D) lowers globalized potential output, because domestic producers are more competitive.


A) raises domestic consumption, because domestic producers produce more.
B) raises the trade deficit, because domestic producers are more competitive.
C) raises domestic production, because input prices have fallen.
D) lowers globalized potential output, because domestic producers are more competitive.

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