10. An increase in the price of nonlabour inputs__________.

A. Shifts the SRAS curve leftward.

B. Shifts the AD curve leftward.
C. Shifts the AD curve rightward.
D. Shifts the SRAS curve rightward.

Answer: A , Energy, land, capital and others nonlabour inputs

have a significant impact on SRAS. An increase in
the price of these inputs shifts the SRAS curve to
the left. There is an increase in the cost of
production.