Figure 24-1

-In Figure 24.1 above, a ________ supply shock will shift the aggregate supply curve to AS₂ and the economy will return to the long run equilibrium at point ________.
A)negative; 1
B)negative; 3
C)positive; 1
D)positive; 3

Question

Figure 24-1 
 
-In Figure 24.1 above, a ________ supply shock will shift the aggregate supply curve to AS₂ and the economy will return to the long run equilibrium at point ________.
A)negative; 1 
B)negative; 3 
C)positive; 1 
D)positive; 3

Quizplus · Accepted Answer

A negative supply shock will shift the aggregate supply curve to the left, causing the economy to move from point 1 to point 3.

Figure 24-1 -In Figure 24.1 Above, a ________ Supply Shock Will Shift