Consider the exhibit below for the following questions.Figure 20-1
-Refer to Figure 20-1. 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 20-1 
-Refer to Figure 20-1. 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

In the short run, a favorable shift in aggregate supply would move the economy to a higher level of output and a lower level of prices. This is represented by a movement from point A to point B in Figure 20-1.

Consider the Exhibit Below for the Following Questions