Figure 14-1
-Refer to Figure 14-1. In the short run, what would result from a favourable shift in aggregate supply?
A) It would move the economy from A to B.
B) It would move the economy from B to C.
C) It would move the economy from C to D.
D) It would move the economy from D to A.

Question

Figure 14-1 
-Refer to Figure 14-1. In the short run, what would result from a favourable shift in aggregate supply?
A) It would move the economy from A to B. 
B) It would move the economy from B to C. 
C) It would move the economy from C to D. 
D) It would move the economy from D to A.

Quizplus · Accepted Answer

A favourable shift in aggregate supply would move the economy from A to B because it would increase the quantity of goods and services supplied at each price level, leading to a decrease in the price level and an increase in output.

Figure 14-1 -Refer to Figure 14-1. in the Short Run, What Would