A decrease in the aggregate supply curve generally results in a(n)
A) decrease in the price level and an increase in output
B) decrease in the price level and a decrease in output
C) increase in the price level and an increase in output
D) increase in the price level and a decrease in output

Question

Quizplus · Accepted Answer

A decrease in the aggregate supply curve typically leads to higher prices and lower output, as the reduced supply of goods and services in the economy pushes prices up while making less available for consumption or investment.

A Decrease in the Aggregate Supply Curve Generally Results in A(n)