Figure 11.3: -Using Figure 11.3,a shift in aggregate supply from AS₂ to AS₁,ceteris paribus,is most likely to cause: A) A decrease in the price level,but no change in real output. B) A decrease in the price level and an increase in real output. C) An increase in the price level,but no change in real output. D) An increase in the price level and an increase in real output.

Question

Quizplus · Accepted Answer

A shift in the aggregate supply curve from AS₂ to AS₁, ceteris paribus, indicates an increase in aggregate supply. This typically results in a lower price level and higher real output, as more goods and services are available at a lower cost.

Figure 11.3: -Using Figure 11.3,a Shift in Aggregate Supply from AS2 to from AS2

Figure 11.3: -Using Figure 11.3,a Shift in Aggregate Supply from AS₂ to from AS₂