Figure 14-1
-Refer to Figure 14-1. How would an adverse shift in aggregate supply move the economy?
A) from A to B
B) from C to D
C) from B to A
D) from D to C

Question

Figure 14-1 
-Refer to Figure 14-1. How would an adverse shift in aggregate supply move the economy?
A) from A to B 
B) from C to D 
C) from B to A 
D) from D to C

Quizplus · Accepted Answer

An adverse shift in aggregate supply, often due to factors like increased production costs or decreased availability of resources, would move the economy from point C to point D, indicating a decrease in output and an increase in the price level.

Figure 14-1 -Refer to Figure 14-1. How Would an Adverse Shift in Adverse