A rightward shift in the economy's AS curve implies that
A)at any given price level,a lower level of output will be supplied.
B)at any given price level,a higher level of output will be supplied.
C)there is a decrease in aggregate supply.
D)there is a demand shock.
E)the same output will be produced,but only at a higher price level.

Question

Quizplus · Accepted Answer

A rightward shift in the economy's AS (aggregate supply) curve means that at any given price level, producers are willing and able to supply a higher level of output, usually because there has been an increase in factors such as productivity, technology, or availability of resources. This is different from a leftward shift in the AS curve, which would imply a decrease in aggregate supply. Therefore, option B is the correct choice. Options A, C, and D are all incorrect because they describe effects that would be associated with a leftward shift in the AS curve, not a rightward shift. Option E is also incorrect because a rightward shift means that more output can be produced at the same price level or even at lower price levels, not just at higher prices.

A Rightward Shift in the Economy's AS Curve Implies That