The fault the following graph shows a decrease in short run aggregate supply in a hypothetical core economy where the currency is the dollar. Specifically, the short run aggregate supply curve shifts to the left from AS1 to AS2 l, causing the quantity of output supplied at a price level of 100 to fall from $200? billion to $150 billion. The drop down for Regulations on the firm, Tax ratesincrease or DecreaseThe drop down for inflation expectations lower or higher

125 100 PRICE LEVEL 75 50 25 0 0 50 100 150 200. 250 300 350 400 QUANTITY OF OUTPUT The following table lists several determinants of short-run aggregate supply. Complete the table by selecting the changes in each scenario necessary to decrease short-run aggregate supply. Change Necessary to Decrease AS Regulations on the firm Tax rates Inflation expectations