If the economy's current level of output rises above its potential level of output, the short-run aggregate supply curve will:
A)Shift right
B)Shift left
C)Become horizontal
D)Become vertical

Question

Quizplus · Accepted Answer

If the economy's current level of output rises above its potential level of output, it means that resources are being used at a rate faster than their sustainable level. This results in higher input costs and lower productivity, causing the short-run aggregate supply curve to shift leftward.

If the Economy's Current Level of Output Rises Above Its