6. An increase in tariffs applied to imported raw materials (steel, oil, etc.) will have which effect on Short-run Aggregate Supply (SRAS)? a. SRAS will increase b. SRAS will decrease c. SRAS is unaffected 7. The SRAS curve is upward sloping because: a. Labor Productivity is rising in the short run b. Businesses expect government subsidies during an economic downturn c. Resource prices (wages, material costs, etc.) are slow to adjust in the short run d. The economy always experiences rising inflation rates 8. Long-Run Aggregate Supply (LRAS) represents a. Nominal GDP b. Real GDP C. d. Potential GDP GDP Deflator