A leftward shift in the economy's AS curve implies that
A)the same output will be produced in equilibrium, but at a lower price level.
B)at any given price level, a higher level of output will be supplied.
C)at any given price level, a lower level of output will be supplied.
D)there is a demand shock.
E)there is an increase in aggregate supply.

Question

Quizplus · Accepted Answer

A leftward shift in the economy's AS curve implies that at any given price level, a lower level of output will be supplied. This may be due to factors such as an increase in input prices, a decrease in productivity, or a decrease in the availability of resources. As a result, equilibrium output will decrease, and prices will increase.

A Leftward Shift in the Economy's AS Curve Implies That