Question

As interest rates rise, the ________ curve shifts _________ resulting in a(n) ________ in the U.S. price level and a(n) ________ in Real GDP.
a. AD; leftward; decrease; decrease
b. AD; rightward; increase; increase
c. SRAS; rightward; decrease; increase
d. SRAS; leftward; increase; decrease

Answer 1

Answer:

An interest rates rise SRAS curve shifts rightward resulting in a(n) decrease in the U.S price level and a(n) increase in real GDP. option C

Explanation:

The short-run aggregate supply curve (SRAS) lets you capture how all of the firms in an economy respond to price stickiness.