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In order to decrease short-run aggregate supply: the following needs to be executed:
- Increase in input prices.
- Increase in Tax Rates
- Increase Burdensome regulations.
The Short-run aggregate supply (SRAS) is a graphical model (See sample attached) that depicts the short-run positive relationship between the aggregate price level and the amount of aggregate production delivered in an economy.
The above listed factors are elements which if increased can trigger a reduction in the supply of goods and services and vice versa.
Learn more about short-run aggregate supply:
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Full Question:
Fill in the table by indicating the changes in the determinants necessary to decrease short-run aggregate supply.
1.Input Prices
2.Tax rates
3.Burdensome regulations
