Which of the following is implied by a leftward shift in the economy's AS curve?
A)There is an increase in aggregate supply.
B)There is a demand shock.
C)At any given price level,a lower level of output will be supplied.
D)At any given price level,a higher level of output will be supplied.
E)The same output will be produced in equilibrium,but at a lower price level.

Question

Quizplus · Accepted Answer

A leftward shift in the economy's AS (aggregate supply) curve indicates that at any given price level, a lower level of output will be supplied. This could be due to factors such as increased input costs or decreased productivity. It does not necessarily imply an increase in aggregate supply or a demand shock, and it does not mean that the same output will be produced in equilibrium but at a lower price level (that would be a movement along the AS curve, not a shift).

Which of the Following Is Implied by a Leftward Shift