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

Question

Quizplus · Accepted Answer

A decrease in aggregate supply in the short run is shown by a shift to the left of the AS (aggregate supply) curve. This means that at any given price level, less national output will be supplied, leading to a decrease in overall economic output.

A Decrease in Aggregate Supply in the Short Run Is