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noname [10]
2 years ago
7

A decrease in energy prices will: decrease short-run aggregate supply. increase short-run aggregate supply. decrease aggregate d

emand. decrease the quantity of aggregate output supplied in the short run.
Business
1 answer:
Alex73 [517]2 years ago
7 0

Answer:

increase short-run aggregate supply.

Explanation:

Given that energy is an important part of the production process. It is often considered to be the next in line after labor, thereby having a significant effect on the economy's aggregate supply of real production.

Hence, a decrease in energy prices will decrease the production cost and in turn lead to an increase in short-run aggregate supply, thereby making the SRAS curve shift rightward.

This is because a decrease in energy prices will make it possible for companies to increase their supply of real production at a cheaper cost

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