Figure 24-1
-In Figure 24.1,output levels below Yn will cause the aggregate ________ function to shift to the ________.
A) supply; right
B) supply; left
C) demand; left
D) Both A and C

Question

Figure 24-1 
-In Figure 24.1,output levels below Yn will cause the aggregate ________ function to shift to the ________.
A) supply; right 
B) supply; left 
C) demand; left 
D) Both A and C

Quizplus · Accepted Answer

When output levels are below the natural level of output (Yn), it typically indicates underutilization of resources, which can lead to a decrease in costs and an increase in aggregate supply, causing the supply curve to shift to the right.

Figure 24-1 -In Figure 24.1,output Levels Below Yn Will Cause the Aggregate