Figure 9.4 -Refer to Figure 9.4. A decrease in aggregate supply is represented by: A) a movement from Point B to Point A along AS₁. B) a shift from AS₁to AS₂. C) a movement from Point A to Point B along AS₁. D) a shift from AS₁to AS₀.

Question

Quizplus · Accepted Answer

A decrease in aggregate supply leads to a leftward shift of the aggregate supply curve. The shift from AS₁ to AS₂ represents this leftward shift.

Figure 9.4 -Refer to Figure 9.4. a Decrease in Aggregate Supply Is