At points on the short run aggregate supply curve (SAS) to the left of the long run aggregate supply curve (LAS), resources are most likely:.a. overutilized, making it more likely that the short run aggregate supply curve (SAS) will shift up. b. underutilized, making it more likely that the short run aggregate supply curve (SAS) will shift down. c. overutilized, making it more likely that the short run aggregate supply curve (SAS) will shift down. d. underutilized, making it more likely that the short run aggregate supply curve (SAS) will shift up.

d. underutilized, making it more likely that the short run aggregate supply curve (SAS) will shift up.

Explanation:

Aggregate supply is a sum of all goods and services that is supplied to a consumer. In the short run aggregate supply is affected by factors such as price level, government policy.

When the prices of inputs increases it results in a reduction in amount aggregate supplied (shift to the left and upward as illustrated in the diagram).

This implies that resources are not used maximally to produce output, but production is limited by the higher cost of inputs.

In the attached diagram aggregate supply shifts upward and to the left from AS1 to AS2

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

hope this