In the context of the short-run aggregate supply (SRAS) curve, a leftward shift typically indicates a decrease in the economy's ability to produce goods and services at the current price levels, often due to adverse conditions. From the options provided, the factors that would shift the SRAS curve to the left are:
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Increased production costs - Higher costs of inputs (such as wages, raw materials, etc.) make it more expensive for firms to produce goods and services, thus reducing aggregate supply at any given price level.
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Decreased labor demand - While this might suggest a decrease in job availability, it is not a direct factor that shifts the SRAS curve left. Decreased labor demand does not directly affect the aggregate supply capacity unless it strains overall economic activity.
The correct answer regarding shifts to the left of the SRAS curve is:
- Increased production costs.
Therefore, the response does not include Decreased production costs or Increased labor demand, as these factors would not cause a leftward shift in the SRAS.