Refer to the information provided in Figure 12.3 below to answer the questions that follow. Figure 12.3
-Refer to Figure 12.3.During the 1980s,many firms in the United States were not investing in new capital.This would have caused
A)the short-run aggregate supply curve to shift from AS1 to AS0.
B)the short-run aggregate supply curve to shift from AS1 to AS2.
C)the economy to move from Point B to Point A along AS1.
D)the economy to move from Point C to Point B along AS1.

Question

Refer to the information provided in Figure 12.3 below to answer the questions that follow.  Figure 12.3
-Refer to Figure 12.3.During the 1980s,many firms in the United States were not investing in new capital.This would have caused
A)the short-run aggregate supply curve to shift from AS1 to AS0. 
B)the short-run aggregate supply curve to shift from AS1 to AS2. 
C)the economy to move from Point B to Point A along AS1. 
D)the economy to move from Point C to Point B along AS1.

Quizplus · Accepted Answer

The Answer of Refer to the information provided in Figure 12.3 below to answer the questions that follow.  Figure 12.3
-Refer to Figure 12.3.During the 1980s,many firms in the United States were not investing in new capital.This would have caused
A)the short-run aggregate supply curve to shift from AS1 to AS0. 
B)the short-run aggregate supply curve to shift from AS1 to AS2. 
C)the economy to move from Point B to Point A along AS1. 
D)the economy to move from Point C to Point B along AS1.

Refer to the Information Provided in Figure 12