Figure 24-1

-In Figure 24.1, output levels below Yn will cause the aggregate ________ function to shift to the ________.
A)supply; right
B)supply; left
C)demand; left
D)A and C only

Question

Figure 24-1 
 
-In Figure 24.1, output levels below Yn will cause the aggregate ________ function to shift to the ________.
A)supply; right 
B)supply; left 
C)demand; left 
D)A and C only

Quizplus · Accepted Answer

When output levels are below the natural level of output (Yn), it typically indicates underutilization of resources, which can lead to lower costs and prices. This situation can cause the aggregate supply curve to shift to the right as firms are willing to produce more at each price level.

Figure 24-1 -In Figure 24.1, Output Levels Below Yn Will Cause the Below