-Refer to Figure 15.2. Output is likely to rise and prices are likely to fall if the economy is at point
A) a.
B) b.
C) c.
D) d.

Name: -Refer to Figure 15.2. Output is likely to rise and prices are likely to fall if the economy is at point A) a. B) b. C) c. D) d.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

-Refer to Figure 15.2. Output is likely to rise and prices are likely to fall if the economy is at point
A) a. 
B) b. 
C) c. 
D) d.

Quizplus · Accepted Answer

Point a is likely on the left of the long-run aggregate supply curve, indicating that the economy is below full employment output, leading to an increase in output and a decrease in prices as the economy moves towards equilibrium.