Consider the exhibit below for the following questions.
Figure 33-4
-Refer to Figure 33-4.In the short run,a favorable shift in aggregate supply would move the economy from
A)A to B.
B)B to C.
C)C to D.
D)D to A.

Question

Consider the exhibit below for the following questions.
Figure 33-4 
-Refer to Figure 33-4.In the short run,a favorable shift in aggregate supply would move the economy from
A)A to B. 
B)B to C. 
C)C to D. 
D)D to A.

Quizplus · Accepted Answer

In the short run, a favorable shift in aggregate supply would move the economy from point A to point B. This is because an increase in aggregate supply will lead to a decrease in the price level and an increase in output.

Consider the Exhibit Below for the Following Questions