A decrease in aggregate supply in the short run is
A)shown by a shift to the left of the AS curve.
B)shown by a shift to the right of the AS curve.
C)interpreted to mean that more national output will be supplied at any given price level.
D)caused by a decrease in the price level.
E)caused by an increase in the price level.

Question

Quizplus · Accepted Answer

A decrease in aggregate supply means that the economy can produce less output at any given price level. This is shown by a leftward shift in the aggregate supply curve.

A Decrease in Aggregate Supply in the Short Run Is