Short-Run Aggregate Supply (SRAS) Practice Test

Based on the short-run aggregate supply curve shown, suppose a pandemic reduces labor availability and disrupts supply chains, raising per-unit costs while nominal wages and many prices do not adjust quickly in the short run. Which option correctly identifies the SRAS determinant and the short-run direction of changes in the price level and real GDP?

Based on the short-run aggregate supply curve shown, firms adopt a new production technology that increases labor productivity, reducing per-unit costs while nominal wages adjust slowly in the short run. Which of the following best describes the shift from $SRAS_1$ to $SRAS_2$ and the short-run effects on the price level and real GDP?