Refer to the information provided in Figure 26.3 below to answer the question(s) that follow. Figure 26.3 -Refer to Figure 26.3. A shift from AS₁ to AS₂ represents a(n) A) increase in aggregate supply. B) decrease in aggregate supply. C) increase in aggregate quantity supplied. D) decrease in aggregate quantity supplied.

Question

Quizplus · Accepted Answer

The shift from AS₁ to AS₂ represents a decrease in aggregate supply because the short-run aggregate supply (SAS) curve has shifted to the left, indicating that, at any given price level, less output is being supplied by firms in the economy.

Refer to the Information Provided in Figure 26