The short-run aggregate supply (SRAS) curve can be shifted by factors that affect the production capacity or costs of firms in the economy. The correct response highlights changes in resource prices and supply shocks as significant influences on the SRAS curve.
When resource prices increase, such as wages or the prices of raw materials, it raises the costs of production for businesses. Higher production costs tend to reduce the quantity of goods and services supplied at any given price level, hence shifting the SRAS curve to the left. Conversely, if resource prices decrease, production costs fall, increasing supply and shifting the SRAS curve to the right.
Additionally, supply shocks, which can be either positive or negative, significantly affect SRAS. For instance, a natural disaster can disrupt production capacity, leading to a leftward shift in the SRAS curve, while a technological advancement might reduce production costs and shift the curve to the right.
The other choices are related to factors that typically influence aggregate demand or long-term supply but do not significantly impact the SRAS curve in the short run. For example, changes in consumer confidence primarily influence aggregate demand, while changes in interest rates affect investment and consumption decisions, again impacting aggregate demand rather than the SRAS directly. Changes in net exports