Consider the exhibit below for the following questions.
Figure 14-1
-Refer to Figure 14-1. In the short run, which of the following would result from a favourable shift in aggregate supply?
A)It would move the economy from A to B.
B)It would move the economy from B to C.
C)It would move the economy from C to D.
D)It would move the economy from D to A.

Question

Consider the exhibit below for the following questions.
Figure 14-1 
-Refer to Figure 14-1. In the short run, which of the following would result from a favourable shift in aggregate supply?
A)It would move the economy from A to B. 
B)It would move the economy from B to C. 
C)It would move the economy from C to D. 
D)It would move the economy from D to A.

Quizplus · Accepted Answer

A favorable shift in aggregate supply typically leads to an increase in output and a decrease in the price level, moving the economy from a point like A to a point like B, where output is higher and prices are lower.

Consider the Exhibit Below for the Following Questions