-In the above figure AD₁ and AS₁ represent the original aggregate supply and demand curves and AD₂ and AS₂ show the new aggregate demand and supply curves.The change in aggregate supply from AS ₁ to AS₂ could be caused by: A) a reduction in the price level. B) the increased availability of entrepreneurial talent. C) an increase in business taxes. D) the real balances,interest-rate,and foreign trade effects.

Question

Quizplus · Accepted Answer

The shift from AS₁ to AS₂ indicates an increase in aggregate supply, which could be caused by factors such as the increased availability of entrepreneurial talent, leading to more production capacity.

-In the Above Figure AD1 and AS1 Represent the Original

-In the Above Figure AD₁ and AS₁ Represent the Original