To identify the statements that illustrate a decrease in domestic resource prices and an associated shift of the Aggregate Supply (AS) curve, we need to focus on factors that cause the AS curve to shift to the right, which typically occurs when the costs of production fall.
Let's analyze each option:
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The supply of available land expands shifting the AS curve rightward.
- This statement is correct. An increase in the supply of land would generally lower costs and increase the productive capacity, shifting the AS curve to the right.
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A substantial decline in immigration decreases wages shifting the AS curve rightward.
- This statement is correct. If immigration declines and it leads to lower wages, this decrease in labor costs can shift the AS curve to the right.
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A decrease in the price of steel and electronic components shifts the AS curve rightward.
- This statement is correct. A decrease in the prices of key inputs such as steel and electronic components reduces production costs, leading to a rightward shift of the AS curve.
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A decrease in the price of steel and electronic components shifts the AS curve leftward.
- This statement is incorrect. A decrease in the prices of inputs would not cause the AS curve to shift left; it would shift it right.
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A substantial rise in immigration decreases wages shifting the AS curve rightward.
- This statement is incorrect. A substantial rise in immigration generally increases the labor supply, which could lower wages. However, while lower wages might decrease production costs, the direct interpretation here is that increased immigration typically does not represent a decrease in domestic resource prices as a factor in itself; it’s more complex.
Based on this analysis, the correct answers are:
- The supply of available land expands shifting the AS curve rightward.
- A substantial decline in immigration decreases wages shifting the AS curve rightward.
- A decrease in the price of steel and electronic components shifts the AS curve rightward.