Consider the exhibit below for the following questions.
Figure 23-1
-Refer to Figure 23-1.In the short run,a favorable shift in aggregate supply would move the economy from
A) A to B.
B) B to C.
C) C to D.
D) D to A.

Question

Consider the exhibit below for the following questions.
Figure 23-1 
-Refer to Figure 23-1.In the short run,a favorable shift in aggregate supply would move the economy from
A) A to B. 
B) B to C. 
C) C to D. 
D) D to A.

Quizplus · Accepted Answer

A favorable shift in aggregate supply would move the economy to a higher level of output and a lower level of prices. In Figure 23-1, this would correspond to a movement from point A to point B.

Consider the Exhibit Below for the Following Questions